Expert forecasts a turnaround in the cryptocurrency market

Former Goldman Sachs top executive and macro investor Raoul Pal noted favorable prospects for the digital asset market over the next 12–18 months. He cited the developing prerequisites for a shift in the economic outlook.

The expert reminded that markets price the future, not the current state of play. In his view, the economic downturn that has been widely discussed on Twitter is already discounted in prices.

He compared the NASDAQ’s dynamics with the ISM’s business sentiment index. By his calculation, the level of the former corresponds to a 2% GDP contraction. The latest data for September showed the ISM unchanged at 52.8 points, above the pre-recession level of 48 points.

Pal forecast deflation over the next 18 months.

“If we look a year ahead, the recession is behind us, rates are lower, and inflation is subdued. This is a good combination for risk assets and cryptocurrencies. The latest bottoms were in June. Bitcoin, two days ago, retraced to its lows. That’s how I see it,” the expert said.

The macro investor pointed to a buy signal on индикаторам ДеМарка. On Ethereum it fired earlier, the expert added.

In July, Pal indicated the cryptocurrency market was being prepared for a reversal of the uptrend in light of rising money supply.

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