Former Goldman Sachs executive Raoul Pal has revealed on social media that he is “more than irresponsibly long ETH right now,” even adding leverage to his position on the second-largest cryptocurrency by market capitalization.
In a tweet, Pal noted that this is “by far and away” the biggest personal position he has had in his entire life, and that heh as a time horizon for the trade between six and nine months.
In a follow-up tweet, the former Goldman Sachs executive noted that he also owns BTC and “a whole bunch of other crypto” and believes other undervalued cryptocurrencies in the future are out there.
Nevertheless, when a user asked Raoul about his ETH position, he noted that sometimes “you want to take risk,” and that in this case, he is willing to take the risk because he thinks “the rewards will compensate for that risk.” As CryptoGlobe reported, Pal has said he sees ETH go to $20,000 “this cycle” based on Metcalfe’s Law.
Raoul Pal said at the time that it’s “all Metcalfe´s Law,” and that “ETH = BTC” whether investors like it or not. He started pointing towards a model his team created to demonstrate Metcalfe’s Law on the BTC network using active addresses and the cryptocurrency’s price, as well as market capitalization, before showing Ethereum looks like BTC in its early days based on that metric.
Earlier this week, Pal noted that there still appear to be similarities in ETH’s performance this year and BTC in 2017.
Ethereum’s price notably reached a new all-time high above $4,400 this week after the Altair Beacon Chain was successfully launched on the network with 98.7% of nodes upgrading to it. The Altair upgrade to the Beacon Chain marks another step taken toward the network’s transition to a Proof-of-Stake (PoS) consensus algorithm.
The cryptocurrency’s price has also been rising thanks to the boom in decentralized finance and non-fungible tokens on top of its network, as demand for these products leads to higher demand for ETH transactions, paid for in ether.
The daily issuance of Ethereum has, on a few occasions, gone negative thanks to the network’s EIP-1559 upgrade. The upgrade changed Ethereum’s monetary policy by burning part of the transaction fees in every new block that previously belonged to Ethereum miners in an effort to alleviate the fees for network users.
Over the last three days, Ethereum’s supply has decreased by over 2 million ETH.
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