After breaking a new record of 58,000, Bitcoin is now correcting to fall back to around $57,113. Raoul Pal, a former Goldman Sachs hedge fund executive, says Bitcoin offers investors a golden opportunity to escape the cycle of poverty and economic despair, a life raft that ordinary investors are looking for.
The price of Bitcoin was up about % to the US dollar as of press time in Hong Kong. The MACD indicator turned bearish as Bitcoin sellers attacked the 3-day support line. Look more than $60,000 before the threshold, bulls need to conquer immediate resistance lines. If bitcoin falls below its immediate support level of $56,200, it could fall back to its one-week support level, currently around $54,300. The immediate resistance lines near the recent high of $58,300 and $58,550 could limit any short-term gains.
Parr founded Global Macro Investor(GMI), a macroeconomic and investment strategy research service, in 2005 and co-manages Global Macro funds for GLG Partners, a Global asset manager based in London. Prior to that, he worked for Goldman Sachs, where he co-managed European hedge fund sales of equities and equity derivatives. Currently, he is the CEO of Real Vision, a financial and business video channel. In a series of tweets last week, he questioned the impact of the Fed’s monetary policy on stocks and other financial markets.
Pointing to the current behavior of the U.S. stock market, Parr says stocks are expensive, but not as crazy as other market experts have pointed out. In his interpretation, the trend mainly reflects earnings growth over the past year. He also rejects the notion that the world is falling into an asset bubble caused by the fiscal policies of the new pandemic.
The real market problem, Mr Parr continues, has to do with stagnant wages, which he says have underperformed all assets over the past 50 years. “Compared with stocks and other assets, such as gold, wages provide a view of no investment opportunities and show that the purchasing power of the American middle class for real estate has declined by 90 percent over the last half century,” he explained.
With Bitcoin hitting record highs recently, Parr sees it as an opportunity for ordinary and retail investors to offset differences in wages and purchasing power. “I call Bitcoin the only opportunity for ordinary people to escape the cycle of economic strife, and point out the particular importance of young people investing in cryptocurrency assets,” he said.
He also pointed out that Bitcoin is the only “life raft” for ordinary people, most of whom have the opportunity to invest in Bitcoin to improve their financial situation and repair the current broken economic system.
Money Control reports that there is already evidence that Bitcoin has gained acceptance from mainstream investors and institutions like Tesla, MasterCard, and New York Mellon, whose willingness to invest is fueling its rally.
Tesla founder Elon Musk also said over the weekend that the prices of Bitcoin and Ethereum appear to have crossed the $1 trillion market cap threshold at the same time cryptocurrencies hit all-time highs. He responded in a recent tweet that he found it highly possible to own bitcoin in S&P 500 companies. “Money just keeps us from trading inconvenient data,” he wrote. “The Ethereum buzz does seem high.”
Musk has become an ardent advocate of cryptocurrencies, and Tesla recently invested $1.5 billion in bitcoin to spark mainstream interest.