After the semblance of recovery seen in the cryptocurrency market since the mid-June bottom, digital currencies pulled back sharply on Friday, along with the equity market.

Pal Roots For Cryptos: Former Goldman Sachs executive and macroeconomic expert Raoul Pal, however, isn’t too concerned about the weakness. “Ah, the old cheeky pre-merger crypto shakeout I see…,” the economists said.

Pal recently said Ethereum remains the “safest, easiest allocation,” and anticipates demand shock for the crypto, Dailyhodl reported. He sees increased demand from institutional investors.

See also: How to Buy Bitcoin (BTC)

Time For Accumulation: New lows are unlikely, he said, apparently suggesting that the crypto market may not pull back all the way down to its mid-June lows. He sees it most likely as a “gut-check quick drop.”

If all the cryptos hit new lows, Pal said he would keep adding. He reasoned that the two-year risk/reward gets “really attractive.”

“50% downside vs possible 10x upside = 20:1 R/R,” Pal said.

At last check, Bitcoin (CRYPTO: BTC) was slipping 0.89% to $21,263.41 and Ethereum was down a steeper 5.12% at $1,622.10, according to Benzinga Pro data.

Photo: Courtesy of CoinDesk on Flickr