Former Goldman Sachs executive Raoul Pal says that changes in global market conditions could set off the next bull run for Bitcoin (BTC).
In a new interview with BitBoy Crypto, Pal says that while he’s still bullish on crypto, the markets need a shot in the arm to ignite the next leg of the bull market.
“I actually 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?
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 less rate hikes than expected,’ and therefore, that tends to be good for crypto or technology kind of Cathie-Wood-style technology investments… I think at the margin, it’s those kinds of things.”
The macro guru also says that institutions continue to invest in the crypto space even as the number of retail investors dwindled as a result of inflation.
“Retail came out in May and the reason they came out in May was because inflation started rising and so people had less money in their pocket. We just saw less activity from retail, but the institutions have been there…
I’m seeing institution asset allocation. I’m speaking to all the biggest pension funds, family offices, banks, everybody, and they’re all setting themselves up. People are starting to allocate capital.”
Pal also says that retail traders will return once the crypto markets start showing signs of life.
“People keep thinking there’s going to be a wall of money where one day, everybody comes in at once. It doesn’t work that way. It’s like a tide that comes in and before you know it, you’re that deep…
Parabolic moves happen once you start to see the price move. I know that sounds ridiculous, but, right now, retail will come back in if they sense they can make money, but they won’t do it if they can’t because they can’t take the risk.”
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Original Source : dailyhodl.com
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