One of the well-known names in the cryptocurrency world and former Goldman Sachs manager Raoul Palthinks that the possible negative atmosphere in the stock market may also threaten the prices of cryptocurrencies in the coming months.
Making a statement on his Twitter account, Raoul Pal announced that he continues to follow NASDAQ closely. Pal thinks it’s quite possible, from a technical analysis perspective, that the index could potentially create lower lows if it breaks a critical support level.
“Serious downside risks may arise if stocks fail to hold, and if the low level is removed.”
Raoul Pal, cryptocurrency He warned that we don’t have to see new lows for the stock markets, but current macro conditions imply that a major correction is imminent, which could also bring digital assets down.
“We can use energy stocks, oil commodities, etc. seeing it in red starts to increase the risk of a complete ‘correlation’ of an accelerated panic. The only place to hide would then be dollars and possibly bonds (because everyone is short). And yes, cryptocurrencies can also be affected by this negative mood.”
Raoul Pal, Real Vision He also spoke in a recent interview with Pal thinks there will be more noise within an overall changing market structure if crypto assets come into the correction phase.
“I’m looking for this downside to layer the positions of the things I want to enter… Obviously, crypto assets will catch on and fall further, but I guess we’re all used to the ups and downs in the markets. I don’t think it’s over the low level so I just think there’s more noise and we’re in that wide sloppy range we’ve been in last year.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.