In spite of the volatile price action ETH has been commonplace in recent months, former Goldman Sachs executive Raoul Pal has declared that he is quite enthusiastic about Ethereum (ETH) and the rest of the crypto markets. In a recent interview with Scott Melker (a crypto analyst), Pal revealed that the crypto hedge funds who suffered massive losses during the market upheaval are now feeling the heat from ETH.
According to Raoul Pal, the cryptocurrency and ether market would surge after the merger.
He elaborated by noting that everyone’s attention is focused on the Merge (the transition of the Ethereum network from Proof-of-work to Proof-of-stake) because it’s getting closer and closer. Real Vision’s creator Pal said that while the rest of the cryptocurrency markets are falling, Ethereum has breathing room to grow. A large portion of the community, he continued, is waiting for the Merge to take place before they start buying up the market.
This, he claimed, would lead to a tremendous surge in the Ethereum market. Although he is optimistic, he acknowledged that others might be expecting the market to fall back to its low point. The market is currently very close to being overbought. It’s interesting, he said, that many people are selling futures and buying ETH right now. That’s how everybody’s hedging against the possible negative outcomes of an ETH merge, and eventually someone will remove the hedges.
Replies Made By Pal Previously
As Pal put it, “it’s quite thought-provoking,” and the current market conditions have crushed all crypto hedge funds. As such, he justified his investment in the call options so that he would have something solid to rely on. Raoul Pal thinks everyone would be surprised by his take on the relative underperformance of cryptocurrency, so he decided to write about it.
Raoul Pal recently made some observations regarding the US M2 money supply and its impact on cryptocurrencies. He explained the direct connection between M2 (a measure of the money supply on a national scale) and cryptocurrencies. A rise in M2 money supply, in his view, will lead to falling rates of economic recovery, inflation, and bond yields in the cryptocurrency industry.