Former Goldman Sachs top executive and macro investor Raul Pal said that the crypto sector would reach more than a billion users during the next bull cycle.
According to him, risky assets like cryptocurrencies are due for an “inevitable wave of liquidity.” Capital inflows are likely to “light up” the industry with new innovations, the expert said.
«In this cycle the crypto sector will grow from 300 million to a billion users and more. And there will be applications you haven\’t dreamed of, and things you haven\’t even thought about. This will happen at scale, whether it\’s Web3, DeFi or something completely new», Pal said.
The macro investor believes the U.S. Federal Reserve has already finished raising rates in a bid to curb inflation. He also spoke of an impending recession that will force the regulator “to change course” and support markets by printing money.
«That is exactly what happened in 2019 after the Fed pivot in 2018. The agency will pause very soon or has already paused. […] When liquidity returns, a market pullback could occur, which, in my view, is unlikely», he explained.
In April, the expert forecasted the exodus of key crypto firms from the United States amid tighter regulation.
In the same month, Pal drew attention to the investment upside in NFT-collections CryptoPunks.