- The economic growth in cryptocurrency has been disappointing in the past couple of months.
- In his recent interview, the Macro guru, Raoul Pal, explained how economic growth could be pushed forward.
- The market has already felt the agony of tightening. Therefore it is likely that the recession is going to back down,
The Macro Guru’s Interview On Economic Growth
The crypto market endured the bear condition for months. The economic growth remained negative throughout the past couple of months. Finally, Raoul Pal, considered the Macro guru, has explained how the markets can get the push they need. Raoul Pal is an ex-executive of Goldman Sachs. He recently got interviewed on the Real Vision YouTube channel about the economic growth of cryptocurrencies. He said that the Fed’s tight monetary policies are already priced into the markets of cryptocurrencies.
The market has already felt the agony of tightening. Therefore it is likely that the recession will back down when circumstances ease, which will be what is finally factored in— According to Raoul Pal. The cryptocurrency markets have already priced in this entire event, as he demonstrates with the chart.
The Evaluation By Raoul Pal
The interest rates are already surged upwards by 75 basis points by Federal Reserves. This happened the previous month. Raoul Pal believes that reducing yield and lowering commodity prices benefit risk-on assets. These assets include digital assets such as crypto. He believes that the low is close. Now, is it in, or is it not? That’s very hard to know.
But what he knows from all his hard work in economics is that there is a balance of possibilities which suggests that inflation is a past problem. Economic growth, according to him, is going to fall sharply. And when the economic growth falls, we’ll have the Pavlovian instincts of the market, which say- ‘The Feds are going to pause and monetary conditions are going to ease….’
Source: https://www.thecoinrepublic.com/2022/07/13/macro-guru-raoul-pal-on-crypto-economic-growth/