Former Goldman Sachs executive Raoul Pal says the crypto industry appears to be setting the stage for a bull run to new all-time highs.
In a new ask-me-anything (AMA) sessionThe CEO and macro guru of Real Vision says that while he expects a “chop” in the short term, he also expects digital assets to drive the “real run” to record numbers later this year.
According to Pal, a combination of the recent approval of spot-traded Bitcoin (BTC) exchange-traded funds (ETFs) and BTC’s upcoming halving event – which will see miner rewards halved in April – will ultimately push the crypto king and digital assets increase after the leveraged positions are liquidated.
“All pre-orders [for the ETFs] have now been filled – all these ETF providers [have been] going to all their customers and begging them, ‘You have to do this’ – everyone has done that. There will be a sequel next week, a lot of GBTC (Grayscale Bitcoin Trust) guys are relaxing, and some will wait a few days [to] see if the market is stronger [or] whatever, so that’s going to continue for a while.
You’ve raised a lot of questions then. By the end, maybe it’s a $1 billion ask, maybe it’s $2 billion of ask that you’ve put forward, so who’s the buyer then? You’ve got the people who have been running this, they’re looking to sell, so you’re going to see volatility and I’ve always reminded you guys with the Don’t F*** This Up mantra, part of that is expect a decline of 30%-35%.
It could be less, but just expect them, and that often happens when you hit this kind of Fibonacci level of 0.618 in the first leg of the bull run. It often corrects sharply [and] people become washed out. The leverage is removed and then the real run begins, and the real run is the run to record highs and beyond. That usually starts around the halving, so I suspect there might be a month or two of chop.”
Bitcoin is trading at $42,953 at the time of writing, down fractionally over the past 24 hours.
I
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney
