How long will the crypto bear market last? Raoul Pal’s macro analysis

Macro investor Raoul Pal is convinced that the current crypto bear market will end only once the Fed eases its hawkish monetary policy by halting interest rate hikes. That could happen in the next couple of months, according to Pal’s predictions. 

“The Fed are unlikely to raise rates as far and as fast as people expect. My guess is they probably stop raising rates sometime in the summer and that will be it,” he said in an exclusive interview with Cointelegraph.

Pal sees the combination of high interest rates and fear of an upcoming recession as the main macro factors that are causing the current crypto bear market.

“Retail investors’ income has not gone up as much as prices, so they’ve lost discretionary income. So, people can only dollar cost average less, can get less involved,” he said. 

Pal thinks that the market’s bottom has not yet been reached and that a mass liquidation phase involving crypto and legacy assets could be coming soon. 

“[Crypto] could see liquidation spike at some point if we see one in equities and then eventually that will be the final capitulation of the market,” he said.

At that point, according to Pal, the Fed will ease its monetary policy, allowing some liquidity to flow into financial markets, thus sparking the next crypto rally. 

“We’ll see bonds rally, crypto rally, maybe some of the technology stocks rally,” said Pal. 

Besides the macro picture, other factors that could facilitate the next bull run are the approval of a Bitcoin spot ETF and Ethereum’s switching to a proof-of-stake system, which is expected for Q3. 

Check out the full interview on our YouTube channel and don’t forget to subscribe! 

All Dutch and English crypto news!

Central African Republic president launches crypto initiative following Bitcoin adoption

Faustin-Archange Touadéra, president of the Central African Republic, has announced the government will be backing an initiative centered around developing the country's blockchain infrastructure. In a...

‘Crypto is just like the end of the 90s with the internet bubble,’ says Hodl CEO Maurice Mureau

For Maurice Mureau, CEO of crypto investment fund operator Hodl, there's "not a lot left" to invest in anymore. With soaring inflation, bonds are no...

Final Capitulation — 5 reasons why Bitcoin could bottom at $10,000

Bear markets have historically been challenging to navigate for traders and the conventional set of "reliable" indicators that determine good entry points are unable to...

Crypto exchange FTX is looking into acquiring Robinhood: Report

Cryptocurrency derivatives exchange FTX is reportedly eyeing a takeover of Robinhood Markets, the popular trading app that introduced millions of traders to Bitcoin (BTC), Ether...

Beste exchanges

Koop je crypto bij Bitvavo