Crypto Space Is Still Bullish with Bitcoin Fundamentals Intact

While negative sentiment in the cryptocurrency sector is at an all-time high, macro guru Raoul Pal believes the industry’s fundamentals remain intact.

In a recent interview with co-founder and presenter of Impact Theory Tom Bilyeu, Pal says investor pessimism is higher than he has ever seen, including during the Great Recession and the demise of the Dot.com boom.

“What we see is a peak freak out, because the earthquake happened and everybody’s hypersensitive. Never in my career have I seen sentiment like this, both in crypto and the stock market. Twitter is so bad. I put up a relatively bullish chart, just marginally bullish, so maybe the NASDAQ has priced in a big recession. I must have had hundred comments of anger, how dare I suggest this?

There is anger, resentment, fear at this moment of a scale that wasn’t in 2008, wasn’t in 2001. I have just never seen anything like it.”

Nevertheless, there is still bullish sentiment  with institutional investors progressively adopting cryptocurrencies, and big tech is gradually interweaving with the crypto business, the macro specialist and former Goldman Sachs executiv added:

“Has anything changed in the crypto market? Nothing? Is the technology being utilized? Has Solana just agreed to use their blockchain with Meta for NFTs ? Yes. Is Google working with Solana? Yes. Did DeFi (decentralized finance) fail? No! Does the decentralized financial system idea work? Yes!Are cryptocurrencies being exchanged in a value system on the Internet? Yes! Is the number of people growing in that ecosystem? Not much because it has stabilized.

But if you look at the past cycle, so the 2017 peak to the low in 2019, we lost about 80% of the active wallet addresses. When I look at it now, we have lost about 30% because the adoption keeps rising.”

As a peace of advice to investors, Pal highlighted in his discussion with Tom that the best strategy when investing in cryptocurrencies is to ‘be in it for the long run’ and buy the dip when you have the chance. He said:

“So it is really a psychological game, a long-term game. We are not involved because we can make money over a one-year time or a two-year time. We are saying, listen, the bet here is if you hold on and if you add at the bottom of the panic cycle and just keep holding and don’t use leverage and just be sensible about what you are doing. Don’t keep checking the market every day, the probability of you coming in at the end of the decade and having manifested your future self in a way that probably might be quite unexpected.”

At time of writing, Bitcoin‘s price has continued its sideways movement, with relatively little deviation up- or downwards and is valued at $16.422 according to CoinMarketCap.