During 2021, meme stock rallies and cryptocurrency were all the rage. One could make a similar case for cryptocurrencies in 2022, but for different reasons.
The value of cryptocurrencies plummeted sharply. Massive financial pressures, scandals and company collapses took away the riches quickly. Many cryptocurrency aficionados are worried about the future of the sector as 2022 draws to a close, especially in light of the recent FTX catastrophe and its many casualties.
Sam Bankman-Fried is in jail and prices are down. The return of the industry is unclear. When will the market change? How secure is cryptography?
Raoul Pal bullish stance
Former Goldman Sachs executive Raoul Pal predicts Crypto and stocks on the rise. Hope the economy improves.
An industry analyst recently predicted cryptocurrency market trends for 2023. Despite these flaws, he is sure they will get better, and they are unprecedented.
Subsequently, he stressed that anyone who wants to enter the market should be encouraged because this has happened before.
Raoul feels that market volatility will increase as customers leave when prices move sideways.
Pal believes that current market conditions resemble 2018 before a stock market and a crypto fund, and he predicts that digital assets should see substantial gains in the next 18-24 months due to increasing adoption rates.
Markets flipped when the Fed changed. 20-30% decline in 2018 Everyone was scared, but then the Fed said, “Okay, the economic data is falling apart, inflation is coming down, so let’s stop.” .
Key highlights from his conversation with Scott Melker on YouTube:
- Pal says we’re getting close to the bottom of the liquidity cycle, but we’re not there yet, so don’t jump in yet.
- The flow of money indicates which industries are moving, therefore the liquidity cycle allows you to decide when and where to invest.
- When inflation is high and times are uncertain, people buy staples, which explains the sell-offs in tech stocks and cryptocurrencies.
- Pal thinks that Cryptocurrency is reaching its lowest point.
Will 2023 mark the end of the crypto winter?
Macro experts say Bitcoin (BTC) and Ethereum it will do well in 2023-2024.
While Bitcoin and ETH gained 300-400% in nine months, he claimed. Assuming them a huge environmental gain. Adoption is crazy, which is why he called it an underwater beach ball.
Metcalfe’s Law is why Pal believes that BTC and ETH will shine next year. Metcalfe’s Law says that the value of a network is proportional to its number of users.
Metcalfe’s Law kicks in throughout the long-term adoption period, driving exponential growth. Every time we reach this point, we hit new highs in 18 to 24 months. He hopes that 2023 and 2024 will be good.
Meanwhile, Bitcoin is trading at $16,720 and Ethereum is at $1,182 at press time, both fractional drops for the day.