Current Crypto Market Trends Echo 2017 Cycle, According to Raoul Pal
Real Vision CEO Raoul Pal draws parallels between the current crypto market cycle and the notable trends of 2017. He posits that macroeconomic indicators could extend this cycle into Q2 2026. This analysis emerges as Bitcoin‘s performance mirrors its gradual ascent followed by a year-end surge observed in 2017.
Macroeconomic Drivers Behind the Cycle
- The US dollar shows signs of weakening, with the US Dollar Index (DXY) declining by 8.99% since the year’s start.
- The business cycle score remains below 50, suggesting a slow climb in the global economy’s position.
- Bitcoin’s inverse correlation with the DXY enhances its appeal during dollar downturns.
Blockchain and AI: A Strategic Focus in the Middle East
Interest in blockchain technology and artificial intelligence is growing among Sovereign Wealth Funds in the Middle East. These entities are not only considering Bitcoin as a reserve asset but are also exploring blockchain for governmental infrastructure projects.
Assessing the Market’s Growth Phase
Pal likens the present market conditions to those of 2020, indicating the market may be in an earlier stage of growth than commonly perceived. This perspective, grounded in current macroeconomic data and the state of the US dollar, points to potential for further market expansion.
