Macro Strategist Raoul Pal Outlines His Outlook for Crypto Investors Amid Recent Market Volatility

Macro strategist Raoul Pal has shared his outlook for crypto investors amid recent market volatility, emphasizing that patience and proper risk management are essential

Macro strategist Raoul Pal has shared his outlook for crypto investors amid recent market volatility, emphasizing the need for patience and proper risk management to navigate this correction.

What Happened: In a recent podcast episode, Pal discussed the factors contributing to the downturn, which he sees as part of a normal bull market correction.

"We’ve got global financial conditions tightening. Financial conditions tightened last year due to the dollar rallying in anticipation of Trump and rising rates ahead of potential tariffs," Pal explained.

His advice to investors boils down to managing risk effectively.

"If you’re using leverage, you are going to get blown out and you’re going to lose control of your tokens. If you’re not using leverage and you have a good risk-management system, you’re going to be okay," he added.

Pal also referenced his M2 money supply model, which he developed with analyst Julian Batella, to predict Bitcoin's BTC/USD price movements with a 10-week lag.

Commenting on Solana's SOL/USD price decline of 53% from its all-time high, Pal dismissed claims that the asset is failing.

"It’s still a very deep and robust protocol. It's not a scam coin, it's not a dead coin, and it's not a failure. People saying these things are just making stuff up," Pal stated.

He further noted that SOL's price seems undervalued compared to global M2 trends, which could indicate potential for significant recovery.

"If you look at the global M2 trends, Solana has a lot further to go down to be in line with the trends that we’re seeing."

See More: Best Cryptocurrency Scanners

What's Next: Despite the short-term market turbulence, Pal remains optimistic about the bigger picture.

He expects the market to recover by mid-March, calling the current phase the "healing stage."

"I think we’ll see the Banana Zone continue in April, May, and June, and we’ll get the second phase of the Banana Zone, which is the Banana Split, and then we’ll get Banana III, which is the Banana Republic."

As the market recovers, Pal predicts a continuation of the Banana Zone, marking a significant bullish period for the crypto space.

Image: Raoul Pal via Bankless