Famous economist and macro expert Raoul Pal made important statements about the current state of the cryptocurrency market in a recent interview. Pal discussed the nuances of the current global economy slowdown. He emphasized that the effects of this slowdown are expected to be seen in the current and future quarters.
Macro expert Raoul Pal, in an interview with Coin Bureau Clips, stated that 2022 was a bearish year and the crypto market has dropped by up to 80 percent. Pal believes that many market participants have largely forgotten this fact. Nevertheless, Pal remains optimistic about the future. He stated that financial markets are forward-looking and there are positive signs for the future.
Currently, indicators show that economic growth will return while inflation continues to decline in the US. Although unemployment may increase slightly, this scenario resembles a “Goldilocks” scenario where economic growth returns without significant inflation. For those unfamiliar, Goldilocks is the scenario where the Fed controls inflation without slowing down the economy.
Pal linked the strength of the crypto market and stock indexes like the Nasdaq 100 in 2023 to these forward-looking indicators. Pal, highlighting that the current state of the crypto market is within a “Crypto Spring,” expressed his optimism for the future by predicting a transition to a “Crypto Summer” in the first quarter of the next year.
When asked to define the “Crypto Spring,” the macro expert likened it to a period with ups and downs, resembling an unpredictable weather season. However, he also emphasized that the market tends to rise over time. The macro expert highlighted that despite occasional sideways price movements and declines, major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have risen throughout the year.
Pal said, ““The crypto spring comes after winter and after all the terrible news comes out. In terms of weather, it can snow one day, then rain, then be sunny, then hot, then cold again. It’s a bit of a strange time, but we usually see better weather in spring, and we see that in crypto too.”