Raoul Pal, a former top manager of Goldman Sachs and macro investor, has predicted that cryptocurrencies will outperform other asset classes due to the ongoing depreciation of fiat and the prolonged banking crisis.
Pal’s opinion was made in light of the situation with the Californian First Republic Bank (FRB), which has been facing issues since the collapse of Silicon Valley Bank and the publication of its first-quarter report, which showed a decrease in deposits from $176.4 billion to $104.5 billion.
On May 1, the regulator announced the closure of First Republic Bank and the transfer of its deposits and other assets to JPMorgan Chase Bank.
Following the news, First Republic Bank shares have fallen 74.75% for the week.
Pal has argued that, due to the impending collapse, the Fed will initiate a new round of printing dollars to pay off the country’s external debt.