Macro investor Raoul Pal is convinced that the current crypto bear market will only end if the Fed eases its ill-fated monetary policy. by stopping interest rate hikes This may happen in the next few months. According to Pal’s predictions
“The FED is unlikely to raise interest rates as quickly as people expect. I guess they might stop raising interest rates in the summer. And that will be it,” he said in an exclusive interview with Cointelegraph
Pal sees interest rates high and fears of a recession. It is the main factor causing the current bear market.
“The income of the individual investor does not increase as much as the price. So they lose their earnings as they see it, so people can spend less on average dollars. and less involved,” he said.
Pal thinks the market bottom has not yet reached its bottom, and a massive liquidation phase involving digital assets and “Legacy Assets” is coming soon.
“[Crypto] may see liquidation skyrocket at some point And finally, it will be the last surrender of the market,” he said, and at that point the Fed will ease its monetary policy. This will allow some liquidity to flow into the financial market. This will trigger the next crypto surge.
“We will see a rebound in bonds. Crypto rally and possibly some tech stocks rally,” Pal said.
Other factors that could facilitate the next bull market would be the approval of the Bitcoin spot ETF and the Ethereum transition to the system. proof-of-stake This is expected in the third quarter of this year.
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