Real Vision macro guru and CEO Raoul Pal sheds light on some of the catalysts he believes could spark another bull run in the crypto market.
In a long thread, Pal told his 846,000 Twitter followers that he believes the recent stagnation in crypto markets could be due to a lack of disposable income for retail investors due to the rising cost of living.
“In my view, the main reason the market has reduced retail activity is that wages are growing more slowly than the CPI [consumer price index]. The cost of living has risen dramatically and that has removed the marginal investor from crypto. You just can’t afford the disposable income. “
With retail investors crowded out, the former Goldman Sachs executive says institutions need to be other big players to finally move the crypto markets. He predicts this will happen sometime in the first quarter of 2022.
“I don’t see stable economic growth or lower growth for a while inflation, so we will have to rely on institutions and hedge funds to provide meaningful capital. I think this is coming and maybe Q1 should confirm this in January, but we have to wait and see. “
Eventually, according to Pal, institutional and retail investors could start feeding each other on the moves and start a FOMO (fear of missing out) loop.
“New capital will flow in over time, and a wider rally when it arrives will bring in retail investors and a knee-jerk institutional investor loop in FOMO’s. That day will come. “
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Source: Crypto News Deutsch