- The Real Vision Founder and Former Goldman Sachs Executive, Raoul Pal, predicts that the next wave of liquidity will bring a huge surge in capital for risk-on assets, including crypto
- This is after he suggested that the Federal Reserve has likely already finished rate hiking in its attempt to reel in inflation
- The majority of the crypto investors and enthusiasts are optimistic about digital assets’ future and affirm that the crypto space will keep on growing
The former Goldman Sachs Executive and Real Vision founder, Raoul Pal, has asserted that the next wave of liquidity will bring forth a considerable surge in capital for risk-on assets, including crypto. During an Ask Me Anything (AMA) session, Pal predicted that the crypto ecosystem would grow to a massive milestone in the next bull market with over a billion users.
“As liquidity comes back into markets, we will see the next rise of the crypto story. And the crypto story will go from 300 million users to a billion users or more in this cycle.”
Notably, Pal, the macro expert, affirmed that this growth would bring innovations that attract new users. The Real Vision founder has further confirmed that there will be applications and innovations individuals haven’t dreamt of. He added:
“And there will be applications you haven’t dreamt of or things you thought weren’t coming. That will come at scale, whether digital identity, massive cases of Web3, DeFi (Decentralized Finance), or something entirely new. Whether it’s ticketing via NFTs (non-fungible tokens), who the hell knows?”
“The Federal Reserve has stopped Hiking Rates to control Inflation,” Pal
According to the macro guru, the Fed’s attempt to reel in inflation is the commencement of a recession. Further, Pal suggests that the Fed might have paused the hike rates. He predicts the Fed will have to reverse course and send higher markets through money printing, like in 2019. He has noted that the continued acceleration will characterize the next cycle until liquidity slows down. Pal Said:
“This happened in 2019 after the Fed pivot in 2018. The Fed is going to pause soon or has paused. They have paused or certainly should pause. And we’ll see this continued acceleration until liquidity slows down at some point and pauses in the market. We may even have pullbacks if liquidity goes back, which I don’t see.”
However, Pal expects the acceleration to occur once the market hits the recession and the unemployment side of the equation, which comes later when the money printing and rate cutting commences.
“We’ll see the acceleration as we hit the recession and the unemployment side of the equation, which comes later when the real money printing and rate cutting starts.”
It is worth noting that Pal’s assertion and predictions align with the general sentiment in the crypto market. Most crypto investors and enthusiasts are optimistic about digital assets’ future and affirm that the crypto space will keep growing. Further, adopting crypto by powerful platforms, including Tesla and PayPal, has also facilitated the industry’s growth.