Former Goldman Sachs Exec Sees Solana ($SOL) Price as 'Very Interesting' Over Forced Liquidations
Recently, former Goldman Sachs executive Raoul Pal has revealed that he sees the price of Solana ($SOL) as “very interesting” over the forced liquidations that led to increasing sell-offs in the cryptocurrency’s price.
In a thread Pal shared with his nearly 1 million followers on the microblogging platform Twitter, the former Goldman Sachs executive and founder of Real Vision noted the ongoing market downturn is a secular trend within a long upward movement, and used long-term Bitcoin ($BTC) and Ethereum ($ETH) price charts to back up his point.
In his thread, Pal pointed out that he believes the “most interesting opportunities arise when the cyclical liquidity cycle brings price down to the secular cycle, as the expected future returns are the largest and that is the point that I add to my position.”
Per his words, digital asset prices can still go lower in the near future, but while he does not use leverage or look at his profit and loss statements, he does “look for good levels to add.” The analyst said he added both $ETH and Solana ($SOL) “near the lows in June,” and will “add again at some point soon.”
Pal has in the past noted he is bullish on Solana. The cryptocurrency lost over 55% of its value over the past seven days as panic-selling has taken over the cryptocurrency. SOL’s seven-day implied volatility, a measure of expected price turbulence in the short term- skyrocketed to an annualized 270%. Its 30-day implied volatility has surged to 190%, compared to Bitcoin’s 95%.
Solana’s price is believed to be dropping as FTX’s sister company Alameda Research liquidates its SOL holdings. FTX collapsed over a liquidity crisis earlier this week as a Binance announcement noting it would sell all of its FTT token holdings triggered a bank run on the exchange, which did not have enough to meet customer demands.
TRON DAO founder, Justin Sun, has said he is “putting together a solution with FTX to initiate a pathway forward” after leading cryptocurrency exchange Binance announced it decided to “not pursue the potential acquisition” of FTX.
Binance dropped out of the FTX deal, citing concerns surrounding the exchange’s business practices and investigations by US financial regulators. FTX’s CEO, Sam Bankman-Fried, told investors on Wednesday that the firm needed up to $8 billion after a bank run saw it halt withdrawals.
Venture Capital firm Sequoia Capital, which invested $150 million in both FTX and FTX.US, has marked the value of its investment down to zero. The VC firm defended it conducted adequate due diligence at the time of investment, saying then FTX was a profitable company that had around $1 billion of revenue and $270 million of operating income.
Reuters has reported that Sam Bankman-Fried’s trading firm, Alameda Research, suffered a series of losses from deals, and that Bankman-Fried transferred at least $4 billion in FTX funds secured by assets including FTT and shares in trading platform Robinhood Markets to support it.
A portion of these assets were customers’ deposits. A reportedly leaked Slack message from Bankman-Fried has revealed he plans to “do right by customers.”
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