A crypto analyst warns that the stock market may trigger a crypto market crash. The present macro factors indicate that a huge correction is on the way, which might bring digital assets down with it.
![This Crypto Analyst Warns Stock Market May Trigger Crypto Market Crash 1](https://i0.wp.com/greatgameindia.com/wp-content/uploads/2022/04/image-19-28.jpg?resize=800%2C450&ssl=1)
Raoul Pal, a former Goldman Sachs Group Inc hedge fund manager, believes the Nasdaq index is on the cusp of striking deeper lows.
If this trend persists, he believes the stock market will pose a danger to crypto values in the following months.
The failure of equities to hold has exposed risk of severe downside if the low is taken out… 1/ pic.twitter.com/P402j7Kglu
— Raoul Pal (@RaoulGMI) April 22, 2022
Pal goes on to say that present macro factors indicate that a huge correction is on the way, which might bring digital assets down with it.
“Seeing energy stocks, oil commodities, etc. all in the red start to raise the risk of a full ‘correlation’ of one accelerated panic. The only place to hide would be the dollar and probably bonds. And yes, crypto would get caught up too (not new lows),” says Pal.
The Real Vision Daily Briefing 📊#SP500 Falls 2.5% + 👀@dailydirtnap joins @maggielake for a look at the latest price action across markets, Fed policy, the likelihood of recession, #bonds & more.
— Real Vision (@RealVision) April 22, 2022
+ A word of caution from @RaoulGMI…
👇 https://t.co/65FxRAp5h8
Pal also believes that if cryptocurrency enters a corrective phase, more noise would emerge inside a ranging market structure.
“I’m kind of looking for this downside to layer into positions of stuff that I want to get into… Obviously, crypto will get caught up in this and will go lower, but I think we’re all used to that going up and down right now. I don’t think it takes out the low, so I think it’s more noise, and we’re in this wide sloppy range we’ve been in for the last year and a bit,” he adds.