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Real Vision TV CEO Raul Pal said that despite a number of negative factors, the second most capitalized cryptocurrency has not fallen to the lows of last year.
Macroeconomist Raoul Pal said on the Investopedia Express podcast with host Caleb Silver that the U.S. Federal Reserve’s (Fed) decision to raise interest rates will further damage a destabilized economy, including the cryptocurrency market.
Pal noted that the leading smart-currency platform has held up relatively well to inflation pressures and the effects of rising geopolitical tensions in Eastern Europe.
“Let’s face it – Etherium is down about 40% this year and the Nasdaq is down 25%. That’s okay, because Etherium hasn’t hit a new low since last year, despite inflation, rising rates, geopolitical tensions, and other negative factors. I don’t think Ether has shown a smooth wave of growth. We have something of a breakout, but ether is still in a very wide price range,” Pal noted.
The macroeconomics expert is confident about the long-term outlook for bitcoin and the cryptocurrency market. He also noted a pause in the emergence of new investors in the market and believes that global inflation is the reason.
“The development of the cryptocurrency ecosystem continues. Central banks are building rails to enter the cryptocurrency market. But we are in a period where retail investors can no longer afford to invest in the market because they are losing more than they are earning. Their income is not growing as fast as inflation, so they have to spend money in supermarkets instead of investing in cryptocurrencies,” Pal said.
The CEO of Real Vision emphasized that despite the severe stock price volatility experienced by Amazon’s early investors, the investment in the company has paid off in the long run and has proven to be quite a profitable investment. However, fees in Tier 2 solutions for Etherium remain too high.
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