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The reason for the fall of the Bitcoin market is caused by a lack of capital for cryptocurrencies in the world’s largest economy, the United States. Specific problems of the crypto industry have nothing to do with it, said Raoul Pal, economist, founder and CEO of Real Vision.
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According to the economist, recently the thesis has been increasingly heard that Bitcoin and other major cryptocurrencies have “broken” and their market cycle has ended. However, the expert considers this conclusion to be erroneous. Raoul Pal noticed that at the same time as the crypto market, the shares of so-called SaaS companies—businesses related to subscription software—sank sharply.
“At first glance, these markets are in no way connected, but in fact they have a lot in common. Both cryptocurrencies and SaaS companies are long-term assets. Their value is not based on current profits, but on the expectation of future growth, the use of technology and capital inflows. That is why both markets react sharply to changes in interest rates on loans and the availability of money in the economy,” Pal explained.
As a result, the same market scenario is formed, manifesting itself in different forms. Some players say that “cryptocurrency is dead,” others believe that artificial intelligence will displace traditional IT companies, the businessman argues.
