Former Goldman Sachs Group Inc hedge fund manager Raoul Pal says the Nasdaq index appears to be on the verge of potentially making lower lows.
The failure of equities to hold has exposed risk of severe downside if the low is taken out... 1/ pic.twitter.com/P402j7Kglu
Pal adds that current macro conditions are hinting that a major correction is coming, which could drag down digital assets with it.
“Seeing energy stocks, oil commodities, etc. all in the red start to raise the risk of a full ‘correlation’ of one accelerated panic. The only place to hide would be the dollar and probably bonds. And yes, crypto would get caught up too (not new lows),” says Pal.
The Real Vision Daily Briefing #SP500 Falls 2.5% + ?@dailydirtnap joins @maggielake for a look at the latest price action across markets, Fed policy, the likelihood of recession, #bonds & more.
Pal also says if crypto ends up in a corrective phase, he thinks it will result in more noise within an overall ranging market structure.
“I’m kind of looking for this downside to layer into positions of stuff that I want to get into… Obviously, crypto will get caught up in this and will go lower, but I think we’re all used to that going up and down right now. I don’t think it takes out the low, so I think it’s more noise, and we’re in this wide sloppy range we’ve been in for the last year and a bit,” he adds.
