Ex-Goldman Sachs CEO Says Bitcoin and Crypto Bottom Already Exist, Predicts Big Shift in Macro Backdrop

Ex-Goldman Sachs CEO Says Bitcoin and Crypto Bottom Already Exist, Predicts Big Shift in Macro Backdrop

The former CEO of Goldman Sachs, Raoul Pal, believes that the bottom is in Bitcoin (BTC), Ethereum (ETH) and the cryptocurrency markets in general.

Traders and investors should look 12 to 18 months ahead because asset markets tend to price the future, the Real Vision CEO said in a new YouTube video.

“Right now we can hear everyone on Twitter saying, ‘We’re in a recession. Obviously there’s going to be another move in stocks because they need to price the slack. That’s assuming everything works in real time.’ But it doesn’t.

So when I look at annual rates of change, let’s say the NASDAQ and compare it to the ISM index, which is my guide to the business cycle… It indicates that NASDAQ’s pricing in the ISM is around 40. The ISM at 40 is in a relatively deep slump. ISM at 47 is usually a stagnation level. And 40 is an order of magnitude negative 2% GDP growth. So it’s already priced.”

The ISM Manufacturing Index is seen as an indicator of the health of the US economy. It currently sits at 52.8 as of September 1, according to Investing.com.

Pal also believes that inflation is likely to turn negative within the next 18 months, which he says is good news for risky assets like cryptocurrencies.

If we look at 12 months, stagnation is behind us, rates are low and inflation is low. So this is a very good result for risky assets and cryptocurrencies. Crypto fell in June. We had a retest. Bitcoin was only retested a couple of days ago, and I think it was a retest.

My DeMark Indicators, which I mainly use for my technical analysis, gave me this signal. ETH had a much stronger signal in June.

I think the markets are looking to the future. I think sentiment is very bearish, and we are in for a potential macro change.”

Traders use the DeMark indicator to identify potential reversals in trends.

Bitcoin is trading at $22191 at the time of writing. Ethereum is trading at $1,692.


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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrencies, or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

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