Raoul Pal Calls “The Crypto Bottom” And Talks Inflation and Growth Fears

Raoul Pal, Macro guru and founder of Real Vision, expects the crypto market to bounce shortly as it has “found its bottom.”

In a recent interview with Layah Heilpurn, the former Goldman Sachs executive noted that although there have been various major macro developments impacting the crypto markets, they did not lead to new lows since the markets’ previous 2021 bottom.

Pal therefore believes the low has already been in:

“The balance of probabilities is that we made the low last year, we retested the low this year and I think the low is in.”

Noting that crypto has “seen everything” so far, he points to its resilience:

“I think we’ve thrown a war, 8.5% inflation, the Fed raising interest rates all at crypto, we’ve thrown the Chinese ban, we’ve thrown so much at it and [yet it]didn’t make a new low. Usually, that’s usually a signal the market has found its bottom.”

Pal expects a slowdown in economic growth to trigger buying pressure in assets that “tend to outperform in low growth environments” and that a change in economic landscape could even see “people fear inflation less and start fearing growth more.” This, according to Pal, is when cryptocurrencies and other long-duration assets will start to outperform.

In the 45-minute conversation Pal also discussed Bitcoin maximalists and what they don’t understand about crypto payment rails and his own portfolio mix. He also zoomed in on how a tokenized decentralized internet will impact online communities, streamline payments, and dropped some advice for Elon Musk now that he is a majority shareholder of Twitter.

At time of writing, Bitcoin, after dropping close to $39,000 this week, has recovered some of the losses and is moving hands at $41,291, up 3% in the last 24 hour, while the global crypto market is up 3.5%, according to CoinMarketCap.