Raoul Pal, CEO of Real Vision, predicts that the smart contract platform Ethereum (ETH) will reach new all-time highs before the end of the year.
In a new blog post, the former Goldman Sachs executive say that a strong performing Nasdaq-100 Index (NDX) is likely to reach new all-time highs within five months along with Ethereum.
“We think the NDX could reach new all-time highs by November; the same goes for ETH. The NDX continues to outperform current liquidity conditions. This also happened in the past, for example in 2019 – you cannot keep a beach ball under water for long – the NDX will always tend to perform better.”
Pal says the NDX is likely to continue rising due to secular trends such as the rise of artificial intelligence (AI) and a weakening dollar.
“Remember: NDX = Debasement + Secular Trend.”
At the time of writing, Ethereum is trading at USD 1,880, up 1% over the past 24 hours. ETH reached an all-time high of $4,878 on November 10, 2021.
The macro guru also monitors the performance of the US Dollar Index (DXY), which compares the US currency against a slew of other fiat currencies.
Pal says the DXY is likely to break its support at 100 in the coming months, which he believes could improve the performance of risk assets like Bitcoin (BTC) and other cryptocurrencies.
“Our base case scenario at GMI (Global Macro Investor) is that we trade within a larger symmetrical triangle (continuation pattern). A fraction of 100 likely means the next stop is 90, which is expected to occur over the next 12 to 18 months as the business cycle begins to decline – a largely supportive environment for risky assets…
Dollar weakness isn’t the ONLY thing that counts for high-risk assets and crypto markets, but looking back, it’s a pretty big plus.
Bitcoin is worth $30,367 at the time of writing, up 0.7% in the past 24 hours.
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