The crypto market is undergoing a new correction, but this does not mean that there are no optimistic predicitons about the prices of digital assets out there.
Check out the latest one coming from macro guru Raoul Pal.
What does the crypto market need to go bullish once again?
Pal addresses some of the catalysts he believes could spark a new bull run in the crypto market.
On Twitter, he said that he believes the recent stagnancy of the crypto markets could be the result of retail investors lacking disposable income due to a rise in the cost of living.
“My view is that the key reason the market has seen less retail activity is that wages are rising slower than CPI [consumer price index]. The cost of living has gone up dramatically and that has removed the marginal investor from crypto. They just can’t afford the disposable income.”
As the online publication, the Daily Hodl notes, since retail investors have been pushed out, and Pal said that institutions and other large players will have to be the ones to finally move the crypto markets.
He said that this could happen sometime in Q1 of 2022.
“I don’t see stable economic growth and lower inflation for a while, so we are going to have to rely on institutions and hedge funds to allocate meaningful capital. I think that is coming and Q1 should confirm that indeed maybe January, but we have to wait and see.”
Pal also made sure to highlight that institutional and retail investors could ultimately start feeding off each other’s movements. This could be also starting a loop of FOMO.
“New capital will flow in over time and a broader rally, when it arrives, will bring retail investors and a reflexive loop of institutional investors FOMO’ing in. That day will come.”
At the moment of writing this article, BTC is trading in the red and the king coin is priced just a little above $46k.