Former Goldman Sachs Group Inc GS hedge fund manager Raoul Pal says the Nasdaq index appears to be on the verge of potentially making lower lows.
He says if this continues, then the downside in the stock market may threaten crypto prices in the coming months.
Pal adds that current macro conditions are hinting that a major correction is coming, which could drag down digital assets with it.
“Seeing energy stocks, oil commodities, etc. all in the red start to raise the risk of a full ‘correlation’ of one accelerated panic. The only place to hide would be the dollar and probably bonds. And yes, crypto would get caught up too (not new lows),” says Pal.
Also Read: Raoul Pal Declares Crypto Is Growing Far Faster Than The Internet, Says Bitcoin Could Reach $600,000
Pal also says if crypto ends up in a corrective phase, he thinks it will result in more noise within an overall ranging market structure.
“I’m kind of looking for this downside to layer into positions of stuff that I want to get into… Obviously, crypto will get caught up in this and will go lower, but I think we’re all used to that going up and down right now. I don’t think it takes out the low, so I think it’s more noise, and we’re in this wide sloppy range we’ve been in for the last year and a bit,” he adds.
Photo: Courtesy of CoinDesk on Flickr
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