Raoul Pal, a former executive at Goldman Sachs, believes that the global liquidity cycle will have a positive impact on cryptocurrency prices. In a recent YouTube video, Pal discusses the current availability of macroeconomic sources of liquidity, including upcoming monetary policy decisions from the U.S. Federal Reserve. He also points out that there is typically an increase in global liquidity during “crypto macro summers.”
Pal mentions that 2020 experienced a significant surge in liquidity due to the pandemic. Similarly, periods such as 2016 and 2012 were also favorable for liquidity, resulting in the rise of cryptocurrencies and technology. However, he notes that the fall season is when the real excitement happens, as liquidity continues to increase and eventually reaches its peak in winter. This is when corrections and down cycles in the crypto market occur. According to Pal, the best parts of the liquidity cycle are yet to come.
Currently, Pal reveals that he has invested almost 100% of his funds in Solana (SOL), along with a few small memecoins and other assets. He cites the compelling charts of the Solana/Bitcoin and Solana/ETH pairs as the reason for his investment decision. He believes that owning the asset with the highest potential for growth is the best strategy to maximize profits.
At the time of writing, Solana is trading at $160.33, showing a 13.5% increase in the past 24 hours.
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