CEO and co-founder of Real Vision Group and Global Macro Investor Raoul Pal said macro and crypto summer has already started in a post on X on March 25.
The prediction is part of his ‘Everything Code’ thesis that explains market movements due to macroeconomic influences.
It is all driven by liquidity, which bottomed at the end of 2022, he said before adding that “macro summer and fall are all about liquidity rising,” and liquidity should rise “all the way into the end of 2025.”
Assets such as tech stocks and cryptocurrencies perform well during this period.
He added that the “bigger game” is the altseason or “Banana Zone,” he said, presumably in reference to the massive gains and parabolic price charts for some altcoins.
Pal’s “Everything Code” thesis, which he publicized in 2023 as the culmination of everything he has worked on since 2005, argues that today’s asset prices are primarily driven by central bank monetary policies and debt levels rather than traditional company fundamentals or economic growth.
High government debt levels globally require central banks to print money via quantitative easing (QE) to make interest payments, and this creates a cycle where more QE is needed every 3-4 years as debt rolls over.
This leads to the debasing of fiat currency, causing asset prices to be bid up, irrespective of company performance or valuations. Tech and crypto usually outperform in this environment as their growth potential offsets the debasing effects of QE.
Moreover, central banks are trapped in this “Everything Code” by larger demographic forces like slowing population growth, which reduces GDP growth and increases QE requirements to service escalating debts, argues Pal.
Raoul Pal is not the only investor predicting a big altseason ahead. Crypto investor “Alejandro” told his 106,000 X followers that the altseaon will come in the next two to four months.
Currently, Bitcoin still dominates, with a market share of 53.4%, according to TradingView. Only when this dips back to the mid-40% level, as it did during the last cycle, will the altseason really be in full swing.
The post Crypto Summer and ‘Banana Zone’ Altseason After BTC Halving: Raoul Pal appeared first on CryptoPotato.
The prediction is part of his ‘Everything Code’ thesis that explains market movements due to macroeconomic influences.
It is all driven by liquidity, which bottomed at the end of 2022, he said before adding that “macro summer and fall are all about liquidity rising,” and liquidity should rise “all the way into the end of 2025.”
‘Banana Zone’ Altseason
Assets such as tech stocks and cryptocurrencies perform well during this period.
He added that the “bigger game” is the altseason or “Banana Zone,” he said, presumably in reference to the massive gains and parabolic price charts for some altcoins.
Pal’s “Everything Code” thesis, which he publicized in 2023 as the culmination of everything he has worked on since 2005, argues that today’s asset prices are primarily driven by central bank monetary policies and debt levels rather than traditional company fundamentals or economic growth.
High government debt levels globally require central banks to print money via quantitative easing (QE) to make interest payments, and this creates a cycle where more QE is needed every 3-4 years as debt rolls over.
This leads to the debasing of fiat currency, causing asset prices to be bid up, irrespective of company performance or valuations. Tech and crypto usually outperform in this environment as their growth potential offsets the debasing effects of QE.
Moreover, central banks are trapped in this “Everything Code” by larger demographic forces like slowing population growth, which reduces GDP growth and increases QE requirements to service escalating debts, argues Pal.
Bitcoin Still Dominates
Raoul Pal is not the only investor predicting a big altseason ahead. Crypto investor “Alejandro” told his 106,000 X followers that the altseaon will come in the next two to four months.
Currently, Bitcoin still dominates, with a market share of 53.4%, according to TradingView. Only when this dips back to the mid-40% level, as it did during the last cycle, will the altseason really be in full swing.
The post Crypto Summer and ‘Banana Zone’ Altseason After BTC Halving: Raoul Pal appeared first on CryptoPotato.
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