Former hedge fund manager Raoul Pal has made a bold statement about Bitcoin and the entire cryptocurrency market. Pal, who is known to be vocal about his sentiments on the market, is positive that Bitcoin, along with the rest of the crypto market, will experience a mega bull run in the near term.
Pal made this known in a recent interview on the Real Vision Crypto media, as he asserted that the market is imitating bullish patterns from the 2015 – 2016 cycle. Pal claims that the current market is mirroring a structure similar to that time.
As he further explains, in 2019, the market started off on a bullish note and saw a 300% pump over a period of time. The market later experienced a massive decline, and eventually rallied by more than 700% within a short period.
The market should expect to see more chaos within the banking sector, which will cause the Federal Reserve to intervene, Pal asserted.
As he’s quoted saying;
“I have a feeling we might go parabolic earlier here because I think we’re getting closer to a banking crisis within the regional banks that will require the Federal Reserve to step in. Interest rates are getting out of control, so interest rates going up and the yield curve inverted, bad news bears for the banks.”
Presently the KRE ETF (Regional Banking ETF) is valued at $43.13, and Pal is asserting that the KRE ETF can be used to decipher where the market currently is.
Once a breakout between the $35 and $30 mark begins, the Fed’s going to take action. Along with the banking crisis is the ongoing real estate crisis, which Pal believes could also play a role in influencing the Federal Reserve’s decisions.
Conclusively, Pal expects the Fed to backpedal on its current stance but also offer the liquidity necessary for the government to clear its National debt.
“Maybe that’s the reason the Fed is tightening rates even further is to create a crisis so they can cut rates, so they can monetize the debt. Because if they don’t, they have to print more money because the interest rates are higher to pay for the debt payments, and that becomes a total catastrophe.” He said.
Meanwhile, the cryptocurrency market is attempting to correct losses sustained over the week. Bitcoin, which is currently up by 0.03%, is trading at a press time price of $30,264.