Crypto vs. Tech: Raoul Pal’s Liquidity Insights
Raoul Pal, a former executive at Goldman Sachs, anticipates a significant shift where digital assets are poised to surpass the growth of technology stocks.
Speaking to his audience on the X social media platform, the CEO of Real Vision emphasizes the pivotal role of dollar liquidity in propelling risk assets such as stocks and cryptocurrencies.
And liquidity is what drives assets…
Our job is to back the fastest horses (the secular trending assets).
Tech (The Exponential Age): pic.twitter.com/EZWpxxzJao
— Raoul Pal (@RaoulGMI) November 25, 2023
Pal underscores the fundamental principle that asset movements are steered by liquidity, advocating for strategic investments in assets exhibiting rapid growth, referring to them as the “fastest horses” in the realm of enduring trends.
Comparing crypto to the Nasdaq, Pal’s charts indicate a similarity in performance trends. He highlights the accelerated pace of crypto, labeling it as “The Super Massive Black Hole” in contrast to the Nasdaq’s trajectory, referring to it as “The Exponential Age.”
READ MORE: Crypto Outlook: Chainlink, Ocean Protocol, Polkadot Analysis
The seasoned expert accentuates that crypto typically outpaces tech when global liquidity experiences an upturn. Pal expresses bullish sentiment towards altcoins in the foreseeable future. However, he cautions about the complexities and risks associated with selecting smaller altcoin projects.
And within Crypto, Alts begin to outperform BTC and do so for the remainder of the cycle… but trading Alts outside the top 10 is HARD (and very risky).
You can accomplish most of the gains by just holding BTC, ETH and maybe SOL (or another proven project with adoption). pic.twitter.com/qNFkHck3wB
— Raoul Pal (@RaoulGMI) November 25, 2023
In a recent newsletter, Pal discussed his optimism about Solana (SOL), a competitor to Ethereum (ETH). He notes SOL’s entry into an upward trend subsequent to breaking out of a bullish pattern—an inverse head-and-shoulders formation. Pal highlights SOL’s remarkable performance, having surged over 475% year-to-date, positioning it as one of the successful core trades at GMI (Global Macro Investor) this year.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
