It’s been just reported that crypto is one of the best choices that we have today.
It’s been revealed that the macro guru and founder of Real Vision Raoul Pal says that crypto is one of the best trades in the current macroeconomic conditions.
The former Goldman Sachs executive said that a surge in food and energy prices, plus a hit on liquidity stemming from sanctions on Russia are weighing down on the global economy.
Avoiding recession
Because of all these factors, Pal recently said that the likelihood of interest rate hikes is diminishing as central banks get pushed into a corner, forced to maintain a more accommodative economic policy to avoid a recession.
“The odds of rate hikes are falling fast because hiking rates into a supply shock just exacerbates what is likely to become a global recession as the Russia situation will not get solved fast. Demand will erode fast at these prices too.”
He also said that Europe has economically become a “hot mess.” He highlighted that there is a very good chance that governments issue stimulus payments to help people pay for the surging cost of living.
“I think there is a decent chance of MMT (modern monetary theory) style handouts to cover food and energy costs. This could be a global thing. It was the new trick that the governments and [central banks] learned in 2020. How else do they deal with the obliteration of household finances?”
He also said this: “The entire setup is very similar to March 2020 for crypto. Let’s see if it makes a new low.”
We’re in the middle of important geopolitical tensions that are affecting the crypto markets as well. A couple of days ago, we revealed that a veteran crypto investor says that current events could help Bitcoin (BTC) transition into a store-of-value asset.
Stay tuned for more news.
