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.
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.
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.
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.