Raoul Pal compared the current level of panic to the March 2020 crash

Real Vision CEO predicted recession and massive liquidations in the crypto market in the coming month

13.05.2022 - 12:05


2 min

What’s new? Raoul Pal, a former employee of the investment bank Goldman Sachs and the founder of Real Vision TV, believes that May will be a tough one for the digital asset market. In his view, cryptocurrencies are facing a “nasty recession” and “liquidation write large.” Pal said that the drop in global market demand is because of the US Federal Reserve System’s (Fed) tighter monetary policy. Although the crypto market is in “full panic mode,” the analyst called cryptocurrencies a “long-term investment.” Pal stressed that he sees the coming recession as a huge “opportunity.” He reported this on Twitter.

What else did Pal write? The analyst claims that other markets are also expected to fall. Pal noted that lay offs and falling house prices are coming. He stressed that this is all due to the Fed raising its key rate by 50 bps. According to Pal, the equity markets have already priced in the drop in demand, while credit markets are just beginning to realize the scale of the recession. According to the analyst, the next four weeks will be “unsettling” for the cryptocurrency market as all positions will be liquidated. Only bonds will remain relatively safe, but most people are short, Pal noted.

What events happened before? In April, Raoul Pal said that changes in the global market conditions could trigger the rise in the crypto market. He suggested that if the US economy or the global economy starts to weaken, then there would be fewer rate hikes. The analyst added that this would have a good effect on the cryptocurrency.

Predictions from other experts. In April, Dan Morehead, founder and CEO of Pantera Capital stated that cryptocurrencies were the only asset resistant to rate hikes by the US Federal Reserve System (Fed). In his view, digital currencies could become the safest asset class for investors in the event of an economic crisis.

In May, a crypto analyst known under the pseudonym Pentoshi predicted a rise in the price of bitcoin and tech stocks. In his view, this was to happen on May 4, after the meeting of the Federal Open Market Committee (FOMC) of the US Federal Reserve System (Fed).

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