Sirwin
Sirwin

Raoul Pal is bullish for Q1, 2022: AMA Overview | Crypto Market Update 12.20


Overview

  • Raoul Pal AMA
  • Market Update
  • Major Crypto News
  • NEWBIES’ lesson of the day: Metamask crash course, get your free airdrop

 


  Raoul Pal AMA Overview

 

On Dec 16th, Raoul Pal did an AMA to promote Real Vision’s new Crypto Pro platform. In the hour-long video, he spoke of several topics, including crypto regulations, macroeconomic trends, and risk to the sector. Below is an quick overview.

The FED and Rates

Pal predicts inflation will curb economic growth in 2022, and the central bank will forgo raising rates when economic data does not coincide with their predictions. He points out that bond yields, often utilized to predict GDP and interest rate changes, remain unconvinced with the central bank’s upcoming rate forecast. Lower rates are generally considered positive for crypto. I covered the latest FOMC announcement in this report a few days ago.

Regulations

Pal seems unconcerned with the hard stance that regulators such as Gary Gensler are exhibiting and explains it’s a negotiating tactic. He foresees crypto entities and regulators meeting somewhere in the middle when proceedings are hammered out. Pal mentions the most significant risk to stablecoins is an unforeseen one: the un-banking of Circle, the issuer of USDC.

Institutional Investments

Pal addresses a question on intuitional investment that leads to his 2022 predictions. Institutional grade investors are not widely concerned with crypto disrupting their sector but instead see it as an opportunity vehicle. Banks, the middleman of transactions, are the most likely to fight adoption in self-preservation.

Asset allocators are in the process of closing their books for the year and rebalancing positions before the holiday. These investors will likely reopen balance sheets starting in early 2022. In addition, many institutions have assembled crypto mandates which will also take effect in Q1. Pal predicts that the beginning of the year will be very bullish for these reasons.

“Crypto is the largest Marco lay-up in all of history.” — Raoul Pal.

Pal is a huge proponent of crypto, and his experience and views are well-respected in finance and crypto alike, including myself. He lays out predictions with a grain of salt and advises preparation for various scenarios, but his conviction of major long-term adoption is adamant.

Pal is not the only crypto figure to predict a possible strong Q1 next year. Others include TA specialist Ben Cowen and Messari CEO Ryan Selkis via his 2022 thesis report. I say “possible” because true experts don’t take hard stances on market predictions. Instead, they follow data and prepare for the event they are correct. We should do the same.

 

  Crypto Market Update Photo by Adam Nowakowski on Unsplash  

Bitcoin (BTC) shows promising signs by breaking out of the downward trendline beginning Dec 7th. However, don’t become too optimistic yet. Bitcoin will likely test the support a few times before a possible rebound. BTC is up 3.87% to 48.6k.

Bitcoin Dominance (BTC.D) is up +.50% to 40.66%. BTC.D refuses to drop below 40% as another trend up could be in store indicative of a strong preference of BTC vs. alts in the short-term.

Ethereum Dominance (ETH.D) is down -1.50% to 21.05%. The 20% level will be an interesting level to monitor. It took Ethereum 200 days to break this well-tested level.

Terra (LUNA) is up a strong +6.34%. Don’t be hesitant in taking some profits in LUNA at these levels. I remain bullish on the long-term potential of LUNA, but there may be some corrections in the short term. LUNA has been up 65% in the past seven days.

Render Network (RNDR) is up +31% today on news of a successful funding round to include some important Venture Capital firms. Render is my preferred method to play the Metaverse trend — more info on the funding round in the news section below.

Notable performers (7d)

  • YEARN +77%
  • SPELL +67%
  • HLM +40%
  • MATIC +26%
  • AVAX +49%
  • HBAR +36%
  • AR +47%
  • ONE +41%

It’s a healthy sign to see the market pushing up quality projects.

 


  Major Crypto News

 

  Notable Events

 

Avalanche (AVAX) will be listed on the Kraken exchange starting today.

TotemFi (TOTM) will launch its Zircon Mainnet today.

Coin Bureau releases a video based on the Messari 2022 Theses by Ryan Selkis. My past report mentioned reading and covering the report, but Coin Bureau beat me to it. Here is their perspective.

 


  NEWBIES’ Lesson of the day.

Metamask crash course. Get your free airdrop!

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Take all actions at your own risk. Start small, DYOR, and store your keys in a safe location.

I will write about Metamask in my NEWBIES section today for two reasons. First, there are rumors Metamask will have an airdrop very soon. An airdrop is a distribution of tokens to users. You get free tokens for being an early user. Airdrops are common in crypto, and there have been a few that have rewarded users substantially. For example, Uniswap airdropped early users 400 UNI tokens which equated to $6k in today’s value. In November, Ethereum Name Service, the .eth domain DAO, airdropped users up to 1000 ENS tokens, which equated up to $80k. I know it sounds crazy, but that’s crypto. And this is your chance to collect your first airdrop.

Metamask is one of the most widely utilized crypto wallets on the market, with 21 million worldwide users, and can be used on various networks, including Ethereum, Binance, Avalanche, Fantom, Harmony, and many more. In addition, it’s easy to use and was my preferred method of testing out protocols in my early crypto days. Oh, and it’s completely free to download.

I’d recommend watching this video before you download Metamask.

You can then download METAMASK here:

Make a few transactions using METAMASK to be eligible for the airdrop. I’d recommend using Harmony one network (ONE), Binance Smart Chain (BNB), or Polygon (MATIC). These networks are easy to use and cost pennies to make transactions.

Make a few small transactions (less than $5) on SUSHISWAP. Here is a tutorial:

Number one rule: STORE YOUR KEYS IN A SAFE PLACE!

Now stick back and wait for your airdrop. We’ll keep our fingers crossed it’s a considerable amount, no guarantees!

 

 

Thanks for reading today. I hope you enjoyed the content. I’m always open to suggestions, so feel free to message me.

Gabi

 

 

 

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Gabi_
Gabi_

Market Research Analyst . Crypto Enthusiast. Hours of research condensed into a daily five minute report.


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