Despite the volatile price action that has persisted over the course of the past few months, former Goldman Sachs executive Raoul Pal recently expressed extreme optimism regarding Ethereum (ETH) and the rest of the crypto markets. In a recent interview with crypto analyst Scott Melker, Pal revealed that ETH is exerting pressure on crypto hedge funds that suffered huge losses during the market chaos.
According to Raoul Pal, the cryptocurrency and ether market will surge after the merger.
His point was elucidated by the fact that everyone is anticipating the Merge (the transition of the Ethereum network from Proof-of-work to Proof-of-stake) because it is rapidly approaching. The founder of Real Vision, Pal, has said that while the rest of the cryptocurrency markets are falling, Ethereum is benefiting because of the space it has been given to grow. He added that a large number of community members are currently awaiting the Merge, after which they will flood the market.
Thus, he asserted, the Ethereum market will experience a significant surge. He noted that skeptics of the market’s continued upward trajectory might be right, but that he himself remains optimistic. Consequently, the market is currently close to being overbought. He noted that it is intriguing that numerous individuals are selling futures and purchasing ETH at present. Everyone is doing this to protect themselves from the potential negative outcomes of an ETH merge, and eventually someone will remove the hedges.
Previous Observations of Pal
Pal remarked that it provokes deep thought and that all crypto hedge funds are currently under extreme stress due to the current market conditions. He cited this as one justification for the buying calls in order to have something to rely on. Raoul Pal believes that the relative underperformance of cryptocurrencies is a fascinating topic that surprises everyone.A few days ago, Raoul Pal commented on the US M2 Money supply and its impact on cryptocurrencies. He explained that there is a direct relationship between M2 (known as a broad money supply) and cryptocurrencies. According to him, as the money supply of M2 increases, the recovery, inflation, and bond profits in the cryptocurrency industry will decrease.