The former Goldman Sachs executive noted that currently, changes in the global financial market situation will result in a better situation for the crypto industry.
2021 was a big bull run for the crypto industry, despite huge negative news like the China crypto ban. Even people were expecting that the Covid-19 pandemic may result in some significant downfall in the price of crypto assets but in reality, these things turned into a new reason for the people to go with crypto.
Recently Raoul Pal, a former Goldman Sachs executive, appeared in an interview with BitBoy Crypto. Pal hinted that shortly market may face some significant correction and that correction is needed for a big bull run.
“(I) think that we’re still probably in kind of the first phase of the next bull leg up. That’s what it feels like to me, but we need to see something change. What is the thing that’s going to change to do that?”
Pal noted that there are chances that traction for crypto among people and institutional investors will surge more if the US economy will face downfall and as a result, it will see a small increment in the interest rates.
“My guess is if the US economy or the global economy starts weakening, then the market is going to say, ‘Oh, there’s going to be fewer rate hikes than expected,’ and therefore, that tends to be good for crypto.”
Pal also figured out an important fact under the high inflation situation and said that no matter what the inflation rate will be, institutional investors will consider investing in Cryptocurrencies continuously, unlike retail investors.
Former Goldman Sachs executive also noted that institutional investors are allocating huge funds in Bitcoin-like assets under the inflation, among the biggest pension funds, family offices, banks, etc.
Pal claims that retail crypto investors will show a huge influx in crypto when they will saw some better opportunities because of some better signs for the crypto industry, which is usual.