Traditional markets are changing for macroeconomic reasons, especially since the end of 2021. This decline in traditional markets affects the dollar. Therefore, both stocks and cryptocurrencies are suffering from the fall of the US dollar, which occupies the most important place in world markets. Because, despite the fact that cryptocurrencies are decentralized, investors are afraid to take risks, since their pockets depend on traditional markets. Although experts say that cryptocurrencies will become a solution to inflationary and crisis situations, it seems that this will not happen soon. However, former Goldman Sachs executive director Raul Pal argues that the global market conditions we are currently in are preparing for the next parabolic bullish growth of the cryptocurrency.
Crypto Relation of Inflation
At the same time, bitcoin (BTC) and the altcoins following it are constantly falling. Despite this, Pal states that we have little time to ignite the next stage of the bull market. Pal reports that we are in the early stages of this launch, and it will definitely happen. In addition, Pal says that the reasons that will provoke this will be the weakening of the US economy and the subsequent increase in the interest rate, which will be less than expected.
In addition, Pal emphasizes that institutional investors are increasingly turning to cryptography, although the number of individual investors is declining due to inflation. Pal explains this by the withdrawal of individual investors from the market due to the increase in inflation in May, as well as the fact that institutional firms are more active in cryptocurrencies as transactional operations. Pal says individual investors are worried about the future and prefer more hedging methods such as pension funds and bank investments.
Investors should take risks
On the other hand, Pal states that, in his opinion, people will one day break this money wall and learn about real decentralized investments. In addition, Pal reports that Bitcoin (BTC) and subsequent cryptocurrencies will grow as a solution to the problem of inflation. However, Pal emphasizes that investors need to take risks to do this.
