Former Goldman Sachs Executive Predicts Crypto Assets Will Outperform Tech Stocks
Raoul Pal, former executive at Goldman Sachs and current CEO of Real Vision, believes that digital assets are poised to surpass tech stocks as a major catalyst emerges. According to Pal, dollar liquidity is the driving force behind risk assets such as stocks and cryptocurrencies.
In a tweet to his one million followers on X, Pal shared a chart demonstrating the close correlation between liquidity and the Nasdaq index over the past decade. He asserts that liquidity is what influences asset performance and emphasizes the importance of backing the fastest-growing assets.
Crypto’s Similarities to Tech Stocks
Pal also compares crypto to the Nasdaq using another chart. He notes that when global liquidity improves, crypto tends to outperform tech stocks significantly.
Bullish on Altcoins
While Pal is optimistic about altcoins, he cautions that selecting smaller altcoin projects can be challenging and risky. In a recent newsletter, he highlighted Solana (SOL) as an example of a successful trade. After breaking out of a bullish pattern, SOL has seen a 475% year-to-date increase.
Hot Take: Crypto Assets Set to Shine
Former Goldman Sachs executive Raoul Pal predicts that crypto assets will surpass tech stocks in performance. He suggests that dollar liquidity is the key factor driving risk assets like stocks and cryptocurrencies. Pal compares the correlation between liquidity and the Nasdaq index over the past decade, stating that backing the fastest-growing assets is crucial. Additionally, he highlights how crypto tends to outperform tech stocks when global liquidity improves. However, Pal warns that choosing smaller altcoin projects can be challenging and risky. Nevertheless, he remains bullish on altcoins and points to Solana’s impressive gains as an example. Overall, Pal believes that crypto assets are poised to outshine tech stocks in the near future.
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