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.
Ethereum ETH/USD is about to undergo the most significant upgrade in its history, called the Ethereum Merge, which is expected on Sept. 15. This represents the joining of the existing execution layer of Ethereum with its new proof-of-stake consensus layer, which will eliminate the need for energy-intensive mining.
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.
Ah, the old cheeky pre-merge crypto shakeout I see… I don’t expect new lows but most likely a gut-check quick drop, but let’s see.
New lows = keep adding (for me) as 2-year risk/reward gets really, really attractive
— Raoul Pal (@RaoulGMI) August 19, 2022
At last check, Bitcoin BTC/USD 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
Image and article originally from www.benzinga.com. Read the original article here.