- Raoul Pal identifies buying opportunity for CryptoPunks amid ETH price pressure.
- NFT prices are expected to trend downwards due to ETH’s deflationary nature.
- Bitcoin hits the highest price point this year at $30k.
In a recent tweet, Raoul Pal, the CEO of Global Macroinvestor.com, highlighted that the prices of CryptoPunks, a popular NFT project, have been under pressure in Ethereum (ETH) terms due to tax season and Blur farming.
Pal noted that while the price in USD has remained stable at around $100k, the rise in ETH has caused distress for the asset’s holders. However, the tweet suggests that it could present a buying opportunity for investors who believe in the long-term growth of crypto.
“As ETH rises over time,” the CEO argued, “excess gains get recycled into trophy assets” like CryptoPunks, “similar to how traditional art markets respond to stock market strength.”
Punks are starting to get very interesting…they have held up in dollar terms at around $100k but in ETH the tax season plus Blur farming has led to near-distressed prices. As ETH rises over time, excess gains get recycled into trophy assets, with a lag. Same as Trad art when… pic.twitter.com/hUib2ZyYtY— Raoul Pal (@RaoulGMI) April 16, 2023
In response to Pal’s tweet, a Twitter user provided an additional perspective on the relationship between traditional art and NFTs. According to the reply tweet, art prices rise as fiat supply expands, while NFT prices trend downwards in ETH terms over time due to ETH’s deflationary nature.
The tweet suggests that less ETH will be available to be spent on assets like CryptoPunks as the number of participants in the NFT ecosystem grows and more use cases for ETH emerge. This insight highlights the complexity of the crypto market and the many factors that can influence the value of digital assets.
According to data from the market tracking website, CoinMarketCap, the global crypto market saw an out-flow of over $34 billion in the last 24 hours, putting its market share at $1.27 trillion. Bitcoin (BTC) trades at $30,350, an 8.65% increase over the previous seven days.
The newly attained $30k price point represents its highest point this year and since June 2022. Similarly, ETH trades at $2,100 after gaining over 15% in the past week.
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