This Is When Crypto Market Will See Bull Run Amidst Extreme Fear

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Until now, the year 2022 has seen a wipe out of nearly $600 billion from digital wallets and cryptocurrency exchanges. The already lowered market was pulled back after the Terra collapse in May. This increased volatility has increased fear among investors and traders.

Whenever the market makes a swing between high and lows, the market participants bets against continued trend, which in turn becomes a reason for more volatility.

Meanwhile, one of the most closely followed crypto analysts and a former executive at Goldman Sachs, Raoul Pal is of the opinion that the current macroeconomic condition is favorable to the crypto market, especially the Bitcoin.

Extreme Fear, A Good Indicator For Crypto

During his recent ask-me-anything (AMA) session on Real Vision, a financial TV channel, Pal claimed that at present the sentiment around the crypto market is extreme fear, yet this might be a good indicator for pushing the cryptocurrencies towards new heights.

He says that at present the market participants have a negative approach and it’s too high. However, he asserts that the crypto volume is increasing. Hence, he urges traders to go low, short and then yield returns.

Next, the analyst talks about bond markets where he is seen quoting that the bond market is broken because sellers have overtaken buyers. However, he feels this scenario could influence the Federal Reserve to not go ahead with strict monetary policies.

As per Pal, the time when the Central Bank loses its value and trust is the time when the risk assets like crypto and Bitcoin will see a rally. He calls this a sad state of affairs yet claims it to be in advantage of the crypto market.