When it comes to crypto, the rise in asset valuation is usually a matter of cycle. That said, analysts tend to predict a bullish cycle based on precedents in the crypto market.
Raoul Pal predicts a crypto market surge of more than 700%
A few days ago, Raoul Pal predicted an increase of 2000% for Solana (SOL). Obviously, his optimism does not only concern this particular crypto. Overall, the economist foresees a rally in the crypto market in the coming months.
The expert thus sees cryptos experiencing a dramatic rise in their current prices. A subjective and highly speculative forecast given the current market circumstances. However, its realization is based on a precedent.
Indeed, Raoul Pal believes that the circumstances are coming together for cryptos to register the increase they experienced in 2015/2016. At the time, they had grown by around 700% in the space of a few months. For him, a similar prospect cannot be ruled out.
The projections of the specialist around the dynamism of the crypto market are not based on this argument alone, however. Raoul Pal envisages the imminent occurrence of a banking crisis which would force the American Federal Reserve (Fed) to intervene.
“I have a feeling we could turn bullish by then, as I think we are getting closer to a banking crisis that will require Federal Reserve intervention. Interest rates are getting out of control, so interest rates are going up and the yield curve is inverting, which is not good news for banks,” he asserted.
Moreover, Raoul Pal thinks that the crisis would give the Fed the opportunity to reverse its austerity policy. It would also provide cash to the government to enable it to manage the federal debt. The Fed could therefore create a crisis that would justify rate cuts and debt monetization.
In the fund, the expert highlights the importance of an injection of liquidity in this context. Its analysis suggests that the latter would play a significant role in the management of the potential crisis envisaged. This, with a positive impact on the crypto market.
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