Former Goldman Sachs manager Raoul Pal says changes in global market conditions could spark the next Bitcoin (BTC) bull run.
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 phase of the bull market.
“I actually think we’re probably still in the first phase of the next uptrend. That’s how it feels to me, but we need to see something change. What will change for this?
My guess is that if the US economy or the global economy starts to weaken, then the market will say, “Oh, there will be fewer rate hikes than expected,” and so that tends to bode well for crypto or tech Cathie Wood-style tech investing … I think, on the edge, it’s things like that.”
The macro guru also says that institutions continue to invest in the crypto space even as the number of retail investors has fallen as a result of inflation.
“Retail came out in May and the reason they came out in May was because inflation started to rise and people had less money in their pockets. We just saw less retail activity, but the institutions were there…
I see the institutional asset allocation. I talk to all the big pension funds, family offices, banks, everyone, and they’re all starting up. People are starting to allocate capital.”
Pal also says that once the crypto markets show signs of life, retailers will return.
“People always think there’s going to be a wall of money where one day everyone will come in at once. That will not do. It’s like a tide coming in and before you know it you’re so deep…
Parabolic movements occur as soon as you start seeing price action. I know that sounds ridiculous, but right now retail will come back if they feel like they can make money, but they won’t if they can’t because they can’t take the risk.”
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