Real Vision CEO and global macro guru Raoul Pal says that the price action of the crypto market is signaling bullish times ahead.
Pal tells his 896,900 Twitter followers that the crypto market is currently mirroring March of 2020, which was during the early phase of the Covid-19 pandemic when asset prices crashed before staging a strong recovery.
Track live crypto price of 10000+ coins!
The global macro guru says that while in March 2020 the concern was the economic shutdown as a result of the pandemic, the risks now include high inflation, surging oil prices, potential interest rate increases and a contractionary monetary policy or quantitative tightening (QT).
“This moment in Crypto feels a lot like March 2020 – Back then we threw the worst possible news at it (a pandemic and a global shut down) and it fell very sharply but failed to make a new low.
Back then Bitcoin turned up 10 days before the Nasdaq 100 index. But bonds led crypto.
Cut to today – 8% inflation, oil at $105, 7 hikes priced in, plus QT with Goldman Sachs calling for 11 hikes and a war. Crypto failed to make new lows.”
According to Pal, the crypto price action is signaling that digital assets could be positively impacted by the macroeconomic environment.
“Time to watch carefully. Yes, this is a different time but the price is suggesting that macro might get more positive for crypto.”
Pal also says that bond yields are currently signaling that economic growth is likely to slow down significantly while the sell-off of tech stocks could conclude soon.
“Bonds are suggesting the same – growth is going to evaporate.
It’s a bit early to tell but pay attention. It might also be the end of the tech sell-off soon.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Natalia Siiatovskaia/Tithi Luadthong
Download MAXBIT Android App, Your best source of all crypto news!
Share this article: