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Crypto Is One of the ‘Right Trades’ as Setup Resembles Previous 860% Gains, Says Former Goldman Sachs Exec

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Crypto Is One of the ‘Right Trades’ as Setup Resembles Previous 860% Gains, Says Former Goldman Sachs Exec

Former Goldman Sachs executive Raoul Pal has revealed he believes that cryptocurrencies are one of the “right trades” during the “dark times” we are going through, implying their setup is now close to the one seen in March 2020.

In a series of tweets shared with his over 900,000 followers on social media, Pal noted the “massive rise in food and energy prices” have led to “enormous tightening of financial conditions” along with the liquidity issues the sanctions against Russia have caused. Pal added that the odds of the Federal Reserve hiking interest rates are now falling as it would exacerbate what is “likely to become a global recession.”

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The former Goldman Sachs executive believes there’s a chance of “[Modern Monetary Theory] style handouts to cover food and energy costs,” which could “be a global thing.” Pal added he believes gold – a traditional safe haven asset – and crypto are “the right trades” along with bonds and U.S. dollars.

Per his words the “entire set up is very similar to March 2020 for crypto” although traditional recession trades outside of the space would still be useful. The executive added that “no one owns enough bonds and gold,” and wished his followers luck during these “dark times.”

In March 2020, according to CryptoCompare data, the price of the flagship cryptocurrency Bitcoin ($BTC) was hovering around the $6,600 mark and the sentiment was seemingly bearish. In early 2021, the price of BTC hit a new all-time high of $63,700, before receding. Later that year, BTC hit a new high close to $69,000.

The cryptocurrency’s price has since dropped dramatically and is currently trading at $39,000.

Crypto Is One of the ‘Right Trades’ as Setup Resembles Previous 860% Gains, Says Former Goldman Sachs Exec

BTCUSD Chart via TradingView

Pal, as CryptoGlobe reported, has in the past revealed he was “more than irresponsibly long ETH” even adding leverage to his position as he believes it was  “by far and away” the biggest personal position he has had in his entire life.” More recently, he told his followers to ignore short-term “noise” and focus on the “exponential” long-term trend.

DISCLAIMER
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

IMAGE CREDIT
Featured image via Unsplash

Source: www.cryptoglobe.com

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