There is a good chance the Federal Reserve will hold off on any rate hikes in December, and in the view of Raoul Pal, that would be very good news for Bitcoin and its crypto peers. The analyst sees this as a potential source of bullish momentum for the markets.
No Rate Hike Expected: Raoul Pal’s Take
Speaking on a recent installment of The Moon Show, Pal put the odds of a December increase at a mere 20%. He argues the Fed’s policy is moving in a direction more conducive to risk assets. In his assessment, such a shift would provide a strong tailwind not only for cryptocurrencies but for the S&P 500 as well.
Impact on Markets: Lessons from the Past
To put his view in context, Raoul Pal cites history. Take 1997: the Fed raised rates a full 125 basis points and there was divergence in the market, but the S&P 500 went on to almost triple, moving from 653 to 1500. In much the same way, he sees an opportunity for the index to be pushed higher by a halt in rate hikes before any correction is due, with Bitcoin positioned to do well in that environment. It is all part of Pal’s larger argument that what central banks do is the principal force behind the direction of equities and crypto alike.
Michael Saylor’s Bitcoin Strategy Remains Unshaken
Michael Saylor’s steadfast devotion to Bitcoin was on full display in the episode. His company has been no stranger to adding to its position at market tops, a case in point being the recent purchase of 7,552 BTC that more than made up for an earlier sale of 6,940 and put their total holdings on the upswing. It is in keeping with Saylor’s well-known stance; he has declared he would not part with his Bitcoin even under duress to liquidate something else. Some analysts on The Moon Show argue that as long as the coin keeps climbing, this kind of aggressive buying will only add to his fortune.
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Source — The Moon Show: https://www.youtube.com/watch?v=-0hr7PcvqaI
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