Macro guru Raoul Pal says crypto assets are poised for a new bull market as traditional financial firms begin to enter the emerging sector.
In a new thread: the former director of Goldman Sachs tells His one million followers on the social media platform
“We also see many of the largest companies in fiatland eyeing the crypto world with envy and starting to visit and build offices there. Think of all the banks and asset managers that are starting to build on blockchain technology, such as Franklin Templeton, Fidelity, Apollo, JPM, Goldman, etc.”
According to the CEO of Real Vision, the crypto world is a new territory, an area separate from the traditional financial system that he calls the fiat land.
Pal notes that the whole point of crypto and Bitcoin (BTC) is to build a parallel economy that can help regular people escape the currency decline seen in fiatland.
“The reason Bitcoin exists is to bypass the traditional banking system and lay the foundation for building a new financial system in parallel – the crypto world.
Such a new world attracts new migrants over time [from fiat land] after each subsequent bout of humiliation or Fiat-Land issues – such as war or expropriation of wealth for example, both of which cause migration [from fiat land] en masse.”
Pal goes on to say that the upcoming Bitcoin Exchange-Traded Funds (ETFs) will serve as a bridge between the crypto world and fiatland.
“The big news outside of the banking issues (which will impact the migration to the crypto world) is the upcoming BTC ETF. The right way to think about this is that it is a ‘trade agreement’ between fiatland and the crypto world.
This agreement allows foreign direct investment (foreign direct investment) to flow into the new world. For foreign direct investment to flow, fiat residents must see superior returns. With the SPX (S&P 500) up 7% and BTC up 100%, the new world looks quite attractive.”
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Generated image: Midjourney
