After appearing to recover in the cryptocurrency market from the mid-June bottom, digital currencies fell sharply along with the stock market on Friday.
Buddy Roots for Cryptos: Former Goldman Sachs executive and macroeconomics expert Raoul Pal, however, isn’t too concerned about the weakness. “Ah, I see the old cheeky pre-merger crypto purge…” economists said.
ether ETH/USD is about to experience the most significant upgrade in its history, dubbed the Ethereum Merge, which is expected on September 15th. This represents the connection of Ethereum’s existing execution layer with its new proof-of-stake consensus layer, eliminating the energy-intensive mining.
Pal recently said Ethereum remains the “safest and easiest allotment” and expects a demand shock for the crypto, Dailyhodl reported. He sees increased demand from institutional investors.
See also: How to Buy Bitcoin (BTC)
accumulation time: Fresh bottoms are unlikely, he said, apparently suggesting that the crypto market may not quite retrace its mid-June lows. He sees it most likely as a “belly check quick drop.”
If all cryptos make new lows, Pal said he would keep adding. He argued that the two-year risk-reward ratio is becoming “really attractive.”
“50% down vs possible 10x up = 20:1 R/R,” said Pal.
Ah, the old cheeky pre-merge crypto cleanup I’m seeing… I’m not expecting any new lows, but most likely a quick drop, but we’ll see.
New lows = keep adding (for me) as the 2 year risk/reward becomes really, really attractive
50% down vs possible 10x uptrend = 20:1 R/R#ETH #BTC
— Raoul Pal (@RaoulGMI) August 19, 2022
finally checking Bitcoin BTC/USD slipped 0.89% to $21,263.41 and Ethereum fell 5.12% to $1,622.10, according to Benzinga Pro data.
Photo: Courtesy of CoinDesk on Flickr