Big shift in macro backdrop expected
Raoul Pal is a former executive of Goldman Sachs. The former executive went on the state he believes that the bottom is already here for Bitcoin, Ethereum, and the overall crypto market.
Mr. Pal says that traders and investors need to be looking a year to a year and a half ahead as assets markets tend to price the future.
“Right now, we can hear people all on Twitter say, ‘We’re going into a recession. It’s clear there’s going to be another leg down in equities because they need to price in the recession.’ That’s assuming that everything operates in real-time. But it doesn’t.
So when I look at the year-on-year rates of change of let’s say the NASDAQ and compare it to the ISM Index, which is my guide to the business cycle… It suggests that the NASDAQ is pricing in ISM at around 40. ISM at 40 is in a relatively deep recession. ISM at 47 is usually a recession level. And 40 is something to the order of magnitude of negative 2% GDP growth. So it’s already priced in.”
The video spoke on crypto and Brexit and how money has changed during these times. There are many pearls of wisdom in the video and insights on regulations.
Raoul also spoke on Solana and how it is in it’s early stage but how the blockchain is growing faster than even the Ethereum chain. He spoke on how there are so many projects going on and how Solana NFTs are a “big deal” he also stated that PolkaDot and Avalanche are nowhere near the growth of Solana and he made a guess that even though the chain has had issues he still expects Solana will do well over time.
Currently Bitcoin is trading at $22,191 and Ethereum is trading at $1692
You can check out all Raoul Pal had to say here on the video below.