Stock market likely to go ‘much higher’ as Ethereum follows Bitcoin’s 2015 price trajectory, says macro guru Raoul Pal
Real Vision founder and macro guru Raoul Pal expresses bullish sentiment on the stock market and Ethereum (ETH).
In the latest installment of the Global Macro Investor newsletter, Pal says that the bullish thesis about the stock market stems in part from the recent weakness of the US dollar index (DXY), which suggests that investors are abandoning the safety of the dollar in favor of risk assets such as stocks and crypto.
According to the macro guru, DXY is showing a bearish pattern which, if confirmed, could give stocks and crypto a boost.
“DXY looks to be forming a large head and shoulders top. A break at 101 would lead to significant downside (but all within a secular dollar market). This should give risk assets a tailwind…”
Looking at global stocks, Pal says the stock market appears to be breaking out of a bullish head-and-shoulders pattern.
“Global stocks just look like the mirror image of the DXY and look set to form a big head-and-shoulders bottom. Again, all eyes on a potential DXY break at 101. That’s the signal to watch for, and likely will suggest stocks go much higher from here…”
As for Ethereum, the macro guru says the second-largest crypto-asset by market capitalization appears to be following in the footsteps of Bitcoin’s (BTC) 2015 price action when it rose from below $2,000 to above $3,000 in less than a year.
“We will also post this chart on ETH which, as we have flagged for a long time, continues to trade much like Bitcoin in the 2014-2016 period…”
At the time of writing, Ethereum is trading at $1,842.
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