The former Hedge fund manager from Goldman Sachs, Raoul Pal, says that an asset’s volatility comes with a better reward. The current CEO of Real Vision TV believes that many institutional investors have been cynical about Bitcoin on account of its unpredictable market behavior. However, in the case of cryptocurrencies as a store-of-value, higher volatility means greater risk returns. In the current year alone, Bitcoin has moved up about 113% from its last ATH.
Such a massive gain is impossible for the big players in the market to ignore. Pal further added that at present, the stability conditions for fiat currencies and the precious metal market are pretty fragile. Under these conditions, the growth opportunities for a new financial market and store of value are very strong. It should be noted that Pal was one of the few people who predict the 2008 recession caused by subprime mortgage correctly.
The Accurate Analysis of Raoul Pal
In the year 2019, Raoul Pal was already onboard with the Bitcoin currency. He was being interviewed at Stephen Livera Podcast when he said that provided that global money supply and liabilities reach a mark of $80 trillion, an alternative financial market would be able to get a 10 percent appreciation by becoming more accessible. The current situation of Bitcoin as a new hedge complies with that prediction.
Even though the flagship currency is presently at a $1 trillion market cap, it has all the necessary ingredients to get to the $8 million mark. Speaking about the volatility of the cryptocurrencies, Pal told the media that this quality compliments the compounded annual returns. He was talking about the 230% gains for Bitcoin holders in the ongoing year.
The three month Range and A Wedge for Bitcoin Price Break Out
It has been some time since Bitcoin is moving at a slow pass between the $50K and $60K range. Pal points out this behavior and predicts that a three-month support range would inevitably be peaked after a three months range and lead the flagship cryptocurrency to a new ATH of six figures. In his 2019 interview, he predicted that the Bitcoin price would reach $1 million per BTC by 2024.
Given the current destruction of the COVID-19 pandemic, the process of seeking shelter in Bitcoin as a hedge has been accelerated. He also appreciated Bitcoin’s position as the best performing asset class in the present year and throughout the entire history of the world. It should be noted that Pal started his Bitcoin journey when the leading coin was only at 17 cents.
