Macro Guru Raoul Pal Warns Leveraging In '70 Vol Asset' Is A 'Ticket To Bankruptcy' Amid $1B Crypto Liquidations
Portfolio Pulse from Mehab Qureshi
Raoul Pal, a macro guru, warns against the use of leverage in cryptocurrency trading, highlighting the recent $1B in crypto liquidations. He advises buying and holding cryptocurrencies at spot prices to avoid the risks associated with high volatility and leverage. Over the last 24 hours, significant liquidations occurred, including a $9 million order on Bitmex for the Bitcoin to USD pair. Bitcoin and Ethereum long positions faced substantial liquidations of $215 million and $134 million, respectively.
March 06, 2024 | 8:02 am
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Bitcoin faced significant liquidations, with long positions seeing $215 million liquidated. Raoul Pal's caution against leveraging could influence investor behavior, potentially reducing speculative trading.
While Pal's warning highlights the risks of leveraging in volatile markets, it's uncertain how this will directly impact Bitcoin's price in the short term. However, it may lead to a decrease in speculative trading and leveraging among investors, potentially stabilizing the market.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Ethereum also experienced significant liquidations, with $134 million in long positions liquidated. Pal's advice against leveraging may lead to more cautious investment strategies among Ethereum traders.
Similar to Bitcoin, the impact of Pal's warning on Ethereum is uncertain in the short term. However, it could lead to reduced leveraging and speculative trading among Ethereum investors, potentially contributing to market stability.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80