Macro expert and former Goldman Sachs executive Raoul Pal says negative sentiment in the crypto industry is at an all-time high, but fundamentals remain strong.
In a new interview with Tom Billeau, co-founder and host of Impact Theory, Pal says investor negativity is bigger than ever, including the Great Recession and the bursting of the dot.com bubble.
“What we have is extremely cynical because there was an earthquake and everyone was hypersensitive. I have never seen this kind of sentiment in my career, whether in crypto or the stock market. Twitter is so bad. chart, to say that the NASDAQ may have priced in a major bearish. I must have had 100 comments of anger how dare I suggest [that],
Right now there’s anger, resentment, fear that wasn’t there in 2008, that wasn’t there in 2001. I’ve never seen anything like it.
But Pal says the crypto space is booming with widespread adoption by institutional investors, noting that big tech is increasingly engaging in the crypto industry.
“Has anything changed in the crypto market? Does not matter? Which technology is used? Has Solana agreed to use its blockchain with Meta for NFTs (Non-fungible Tokens)? Yes. Will Google Solana Fail Is DeFi (Decentralized Finance)? No. Does the idea of a decentralized financial system work? Yes. Are cryptocurrencies exchanged on the internet a value system? Yes. Is the number of people in that ecosystem increasing? Not so much, because it is stable.
But if you look at the previous cycle, in 2017 to the peak of 2019, we lost about 80% of active wallet addresses. Looking at it now, we’ve lost about 30% because the adoption rate is going up.
Pal says investors should take a long-term approach to crypto investing, buying during panic dips and holding onto their assets to see future gains.
“So it’s really a psychological game. And it’s a long-term game. We don’t get into it because we can make money over a year or two years. We say listen the bet here is if you hold and if you add at the bottom of the panic cycle and just keep holding and don’t use leverage and you’re smart about what you do and don’t do it’s likely you won’t stay the market every day to check [is] You are approaching the end of the decade and your future is unfolding in a way that can be quite unexpected.
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