On August 14, Bitcoin (BTC) surged beyond $25,000 for the first time in months, but traders were reluctant to bet on a bull run. The pair could fall apart over the weekend and wind up owing $23,700. Over the weekend, bulls must keep the pair above $24,000.
Macroeconomic expert Raul Pal stressed that he is confident that the crypto market has reached its all-time low. A former Goldman Sachs executive claimed in a new interview with asset management company Arca that the macroeconomic environment that has kept the crypto market gloomy for most of the year has begun to change.
The macro is rolling over for him. By that, he means that a recession is approaching. The Institute for Supply Management (ISM) survey and other items ought to start disintegrating quite soon and we notice it everywhere.
So, that development is disappearing. Additionally, the legend is not kept, and most items are reduced by 30% to 50%.
Everyone is betting on the rise of oil reaching $200. I believe a washout is imminent, and it drops to $60. The final inflation tale is therefore that.
Will inflation come down?
Pal predicts that changes in the macroeconomic environment will affect enterprises first, then the labor market.
After Covid, he claimed, People accumulated enormous inventories. Due to the economy’s slowdown and the impact of inflation on disposable income, those inventories are currently unsold.
So, Walmart and Amazon have demonstrated it for us. In an effort to sell it, they will start discounting the inventory. People are firing workers. Thus, the macrocycle will reach its perishable phase.
Pal emphasizes that while there is negative news for the economy, there is positive news for the financial markets.
“Why is this making Raul bullish? Because the result is that as inflation subsides and bond yields fall, liquidity conditions improve. And what drives the financial markets at large is the liquidity position.”
