In an exclusive interview, renowned economist Raoul Pal analyzes the macro factors that are keeping the crypto markets under pressure and the triggers that could fuel the next Bitcoin (BTC), Shiba Inu (SHIB) and altcoins rally.
When will the Bitcoin (BTC) and altcoin bear market end?
Economist Raoul Pal, who you are well acquainted with from the news of Kriptokoin.com, believes that the current crypto bear market, especially BTC, will end only when the Fed stops interest rate hikes and loosens its hawkish monetary policy. According to Raoul Pal’s predictions, this could happen in the next few months. The economist makes the following assessment:
It is unlikely that the Fed will raise rates as high and quickly as people expect. My guess is they’ll probably stop raising rates in the summer and that’s it.
Raoul Pal sees the combination of high interest rates and fears of an impending recession as the main macro factors driving the current crypto bear market. The Economist says the following on the subject:
Individual investors’ incomes did not rise as much as prices. So they lost their discretionary income. So people can just keep the dollar cost less on average, less involved.
What will fuel the next crypto rally?
Raoul Pal thinks that the bottom of the market has not been reached yet and that a mass liquidation phase involving crypto and legacy assets may be coming soon. and in the end this will be the final capitulation of the market.
At this point, according to Raoul Pal, the Fed will loosen its monetary policy and allow some liquidity to flow into the financial markets, thereby sparking the next crypto rally. The economist uses the following expressions to explain the issue:
Bond rally, crypto rally, maybe we will see a rally in some technology stocks.
Besides the macro picture, other factors that could facilitate the next bull run could be the approval of a Bitcoin spot ETF and Ethereum’s move to a Proof of Stake (PoS) system expected for Q3.
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