Looming Macro Setup Could Explode Crypto In The Stratosphere: Raoul Pal

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Former Goldman Sachs executive Raoul Pal said he sees a developing macro setup that could potentially blow Bitcoin and other crypto markets into the stratosphere.

In an interview with The Breakdown host Nathaniel Whittemore, Pal discusses how a weak global economy could act as a catalyst for the growth of the digital asset market.

“The macro setup is, I think, global growth comes out weaker for the next nine months. And I think the Federal Reserve, even if it talks about tapering, will eventually accelerate QE. [quantitative easing]. This is how I think it goes. This is what the bond market is telling you. Once the crypto markets detect this, they will explode. What we have is a macro that’s potentially there.

Macro stories develop slowly. These are not quick stories. This is month-to-month data. So we’ll see that over the next three months. But we’ll likely have a global slowdown. “

According to Pal, the slump in the global economy could force some of the biggest central banks to cut interest rates or engage in a new round of currency impressions.

“We’ll probably have the Bank of Japan having to print for the reasons we just talked about, which is that Japan totally screwed up the virus. They will do it in size. The Chinese economy is in the toilet right now. They will probably do something. So we have a stimulus coming from Asia. Is the Fed doing more? Are Europeans doing more? In general, they have. They generally cut rates twice after each recession. They are therefore likely to start over for a number of technical reasons.

The macro guru says the combination of loose monetary policies and strong monetary properties of the crypto provides the “perfect setup” for the continuation of the bull market.

“So we have rate cuts and this perfect setup with no supply and demand in the middle of an exponential bull market. You don’t have one often in your life.

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