Former Goldman Sachs executive Raoul Pal says that the crypto markets have reached their relative price low, and that the industry is positioning itself for another rally.
Prior to founding macro economic and investment strategy research service Global Macro Investor (GMI) in 2005, Pal co-managed the GLG Global Macro Fund in London for global asset management firm GLG Partners (which is now called “Man GLG”). Before that, Pal worked at Goldman Sachs, where he co-managed the European hedge fund sales business in Equities and Equity Derivatives. Currently, he is the CEO of finance and business video channel Real Vision, which he co-founded in 2014.
In the April 2020 issue of the GMI newsletter, Pal explained why he believes that Bitcoin, which he called “the future”, could one day have a $10 trillion valuation. In that issue, Pal said that the idea of a $10 trillion valuation for Bitcoin is not so crazy:
“After all, it isn’t just a currency or even a store of value. It is an entire trusted, verified, secure financial and accounting system of digital value that can never be created outside of the cryptographic algorithm… It is nothing short of the future of our entire medium of exchange system, and of money itself and the platform on which it operates.“
On April 12, during an interview on eipisode #80 of The Layah Heilpern Show, Pal claimed that there were a number of potential catalysts and new developments in the crypto space to trigger another price rally. Pal predicted that the upside potential for crypto was high, while predicting that the market had already reached its relative price low.
As reported by The Daily Hodl, Pal said,
The balance of probabilities is that we made the low last year, we retested the low this year and I think the low is in.
Pal noted a number of factors impacting the price of crypto, including the war between Russia and Ukraine, 8.5% inflation in the United States and the Federal Reserve raising interest rates. He said the influence of external forces had failed to push the crypto markets to a new price low, which he called a “signal the market has found its bottom.”
Pal predicted that slow economic growth would be an upside catalyst for the crypto markets, as investors flock to what he called “long-duration assets” that tend to do well in environments of low growth. He said such a situation could provide a spark for the crypto markets to ignite another rally, indicating that investors feared inflation more than price volatility.
Pal also claimed that Bitcoin’s historic four-year cycles based upon halving events were likely over. He argued that the crypto market has grown and matured past the point of Bitcoin being the dominant force, noting that the massive user base was working to reduce overall volatility.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.