This Is Triggering Volatility In The Crypto Markets According To Raoul Pal | CryptoGazette
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The massive volatility in the crypto markets is triggered by a specific element, and Raoul Pal is addressing it. Check out the latest reports below.
Real Vision CEO and macro guru Raoul Pal says that the current downturn in the crypto market is driven by a shift in narratives.
Inflation rate’s importance
In an interview during Ark Invest’s virtual Big Ideas Summit 2022, Pal explained what happens when the inflation rate frustrates market expectations.
“Why we’re seeing volatility right now is the shift of narratives. Markets don’t like that shift. The narrative was the inflation shift. The inflation shift last year. I think what happened is inflation was real and inflation destroyed marginal spending and marginal investing and I think we saw it in meme stocks.”
He continued and said:
“We’ve seen across the market, we’ve seen it in cryptocurrencies where the marginal investor got marginalized because they didn’t have enough money. I think that was one of the features of what happened, and the bond market was pricing in some more inflation, but not a great deal.”
He also made sure to explain the fact that the narrative is shifting and that future indicators show both growth and inflation slowing faster than the general market expects.
At the moment of writing this article, BTC is trading in the red and the king coin is priced at $36,544.
Crypto is maturing
Despite the market corrections that have been taking place recently, there are more and more optimistic predicitons about the prices these days.
Bitcoin is seeing such forecasts as well and the overall sentiment seems to be changing, despite the price fluctuations.
It’s been just revealed that EX Goldman Sachs CEO Lloyd Blankfein says that his view of Bitcoin (BTC) and other cryptos has changed over the years. He also made sure to say that crypto is maturing.
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