Inflection Point Nearing as Nasdaq Can Potentially Bring Crypto Prices Down – Raoul Pal

Macro guru and Real Vision CEO, Raoul Pal, is warning his Twitter followers that a potential slide of the stock market is going to impact crypto prices in the next months.

According to the former Goldman Sachs executive, that Nasdaq could be on the verge of breaking its critical support levels and record new lows.

Crypto markets do not necessarily have to follow suit, however Pal notes, a major correction is looming and could take digital assets such as Bitcoin along:

“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 (because everyone is short).

And yes, crypto would get caught up too (not new lows).”

In another tweet, Pal warns that economic growth in the U.S. is diminishing and predicts a short term collapse. He says:

“My view is that we are rapidly approaching an inflection point where peak inflation fears give way to lower inflation and fast decelerating growth.”

Pal adds:

“The answer to higher prices is demand destruction. The Fed is a side show as the markets have already taken rates up so far as to invert the yield curve and inflation is acting as a huge monetary tightening… If growth slows rapidly, commodity prices will fall…”

Two weeks ago, the Real Visoin CEO had said that a change in economic landscape could even see “people fear inflation less and start fearing growth more.” This, according to Pal, is when cryptocurrencies and other long-duration assets will start to outperform.