Raoul Pal’s Bold Predictions
Former hedge fund manager and Real Vision founder, Raoul Pal, is stirring the pot in the crypto world with his recent predictions. Contrary to many social media pundits, Pal insists that the current crypto market cycle won’t come crashing down this December, as it did in 2015 and 2017. Instead, he predicts a continuation of the bull run until sometime between March and June next year. Buckle up, folks, it might be a bumpy ride!
Expect the Unexpected: The Path of Most Pain
While Pal is optimistic, he also warns of potential turbulence ahead. He foresees the Bitcoin (BTC), Ether (ETH), and altcoin markets possibly facing two major sell-offs before marching forward. “My guess is that we probably have a sell-off, and then it rips again because that is the path of most pain… and markets tend to take the path of most pain,” he stated, beautifully summarizing the perpetual rollercoaster of crypto.
The Crazy Price Predictions
A bit of crypto crystal ball-gazing, if you will. According to data from Ecoinometrics, if trends mirror those of 2017, Bitcoin could peak at an astounding $253,800 in this cycle. Yes, you read that right, folks. That’s a price that would make your grandmother’s investment advice look rather pedestrian!
Ethereum: The Rising Star
Pal has been getting particularly warm and fuzzy about Ether, dubbing it the “greatest trade” of 2021. With Ethereum 2.0’s launch around the corner and whispers of a prospective Ether exchange-traded fund (ETF) making their way into the air, we might just see ETH surge higher. Pal explains, “Institutions tend to make asset allocation decisions by quarters, and my guess is we’re going to see a huge inflow between January and March next year.” Sounds like 2022 could be quite the party for Ethereum enthusiasts!
The Supply and Demand Tug-of-War
With only about 11% of the total ETH supply available for trading due to the staking phenomenon, Ethereum is creating a classic supply and demand imbalance. Pal reminds us, “Everybody is staking their ETH”—so as more crypto aficionados lock up their Ether, prices might just go through the roof. Think of it as a currency trying to break free from a very tight pair of pants!
The Long-term Picture: Cycles and Halvings
Bitcoin’s cyclical nature is part of what makes it so captivating. As we’ve seen since its inception in 2008, BTC typically operates in four-year cycles, particularly aligned with halving events, which reduce mining block rewards. Although Bitcoin has seen a 7.3x increase since its last halving in May 2020, many analysts speculate that mainstream adoption might start changing the cyclical dynamics. It’s like moving from a small backyard barbeque to a full-blown festival—it’s going to change the game!
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