Big players are likely finished taking crypto profits, according to macro guru Raoul Pal

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Real Vision CEO Raoul Pal believes the institutional forces behind the recent volatility in the crypto market have finished taking profits, opening the door for digital assets to start the new year on a strong footing.

In a YouTube interview with The Stakeborg Talks, Pal identifies marginal drivers in current crypto markets.

“I take a step back and look and wonder who is the marginal driver in this market right now?

It’s not retail. Why not? New wallet addresses and the like are below highs now, and I think it has to do with this consumer issue.

You’ve increased retail fuel prices… fixed energy costs, so their marginal investment capacity has decreased as well as [the ability to] use.”

Retail price inflation, Pal argues, has pulled marginal crypto investments off the table, leaving institutional players alone to influence market prices.

As Pal points out, many large investors have an incentive to take profits at the end of calendar years.

“So you took marginal money out of the market.

If you took them [retail traders] out of it, then the institutions are at the end of the year, and they are incentivized differently …

Again, they’re not saying they don’t believe in the market, they’re saying I believe in getting paid.

And so I want to protect my profits.

The result, Pal says, is an uneven market. However, the macro guru believes profit taking may have ended last week.

“It created an imbalanced market.

Now the question is: are they finished?

Looks like they’re done because the market has kind of been choppy since last week which was the traditional last week everyone squared their books.

Despite this, Pal warns that the correction in the crypto market may not be complete. Regardless, he still predicts a strong start for crypto in 2022.

“Could have another lower leg, potentially.

Could it come from Asia, where a lot of the sales also come from?

Again, maybe… but it’s likely that next year will be a good start.

I

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