Crypto Market Analysis: Macro Guru Raoul Pal Forecasts Long Recession: 'Solana Will Massively Outperform Bitcoin'

Former Goldman Sachs executive macro guru Raoul Pal, on Wednesday, shared his optimistic outlook for the cryptocurrency market, referring to the current phase as “crypto spring” and anticipating an upcoming “macro spring.” 

 "We are in ‘crypto spring' right now, about to enter macro spring," he said.

What Happened: Speaking at Mainnet 2023, Pal expressed his belief that Ethereum ETH/USD is a faster-growing asset than Bitcoin BTC/USD over time, while also predicting that Solana SOL/USD will outperform BTC significantly. 

"SOL will massively outperform BTC. The bulk of my investment are in ETH, then SOL, BTC, etc.," he said.

Pal revealed his investment strategy, stating that the majority of his investments are allocated to ETH, followed by SOL, BTC, and others.

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Why It Matters: He emphasized that the liquidity cycle holds paramount importance in relation to cryptocurrencies, stating, “The easiest way to the dollar is through stablecoins, and not through the banks.” 

Furthermore, Pal expressed concerns about the continuous quantitative easing (QE) measures implemented by central banks to manage debt interest payments. He argued that these actions mainly serve to sustain the interest payments on debt rather than promoting substantive GDP growth. 

"All this QE is just to pay the interest on the debt. And we don't have GDP growth. Likely there will be negative GDP Q4 into Q1/2024. We have probably been in a recession for a while," he adds.

Meanhwile, other analysts like Jason Pizzino said that the market is showcasing signs of strength and potential for growth. He believes that Bitcoin is gearing up for a significant uptrend.

Analyst Credible Crypto said, earlier, that Bitcoin will likely dip down to at least the mid-$26,000 level while remaining in an overall upward channel.

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Price Action: At the time of writing, BTC was trading at $26,617 down 1.56% in the last 24 hours, according to Benzinga Pro.

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