Former Goldman Sachs Executive Highlights Bullish Indicators and High Potential for Crypto Market
Raoul Pal, a former Goldman Sachs executive, believes that the cryptocurrency markets have achieved their relative bottom and that the sector is preparing for another boom.
Pal co-managed the GLG Global Macro Fund in London for global asset management business GLG Partners (which is now named “Man GLG”) prior to creating the macroeconomic and investment strategy research service Global Macro Investor (GMI) in 2005. Pal formerly worked at Goldman Sachs, co-managing the European hedge fund sales division in Equities and Equity Derivatives. He is now the CEO of Real Vision, a finance and business television channel he co-founded in 2014.
Pal outlined in the April 2020 edition of the GMI newsletter why he thinks Bitcoin, which he refers to as “the future,” might one day reach a $10 trillion price. Pal said in that issue that the thought of Bitcoin becoming valued at $10 trillion is not that outlandish:
“After all, money is not only a medium of exchange or a store of wealth. It is a completely trustworthy, validated, and secure financial and accounting system for a digital currency that can never be generated independently of the cryptographic algorithm… It is nothing less than the future of our whole system of mediums of exchange, as well as of money and the foundation upon which it functions.”
Pal said on April 12 during an interview with The Layah Heilpern Show’s episode #80 that there were a lot of possible triggers and fresh developments in the crypto world that might cause another price spike. Pal projected that cryptocurrency’s upward potential was significant, but that the market had already achieved its relative price low.
Pal said, as published by The Daily Hodl, that The balance of probability indicates that we reached the bottom last year, retested it this year, and I believe the low has been reached.
Pal cited a variety of variables affecting the price of a cryptocurrency, including Russia’s conflict with Ukraine, the United States’ 8.5 percent inflation rate, and the Federal Reserve boosting interest rates. He said that external pressures were unable to drive the cryptocurrency markets to a new price low, which he characterized as “an indication the market has reached its bottom.”
Pal predicted that sluggish economic growth will benefit the crypto markets, as investors flock to what he referred to as “long-duration assets,” which perform well in low-growth conditions. He said that such a scenario might serve as a catalyst for the crypto markets to resume their climb, demonstrating that investors are more concerned about inflation than price volatility.
Pal also said that Bitcoin’s previous four-year halving cycles were likely to be complete. He stated that the crypto sector had developed and evolved beyond the point where Bitcoin is the dominating force, stressing that the enormous user base was contributing to overall volatility reduction.