Former Goldman Sachs executive Raoul Pal predicts that the stock market will soon hit a bottom, with the S&P 500 entering oversold territory, and expects institutional buyers to step in and establish a market bottom; he also suggests that Bitcoin and Ethereum are showing bullish signs on certain indicators.
Former Goldman Sachs executive Raoul Pal predicts that institutional investment in cryptocurrencies will drive the total market cap to over $10 trillion, more than triple its peak in 2021, as financial institutions follow the lead of family offices in entering the crypto space.
Former Goldman Sachs executive and Real Vision CEO Raoul Pal explains that crypto assets, unlike other systems, allow users to own and operate pieces of a network, creating scarcity in an increasingly digital world and leading to potentially much larger market cycles.
Former Goldman Sachs executive Raoul Pal believes that Bitcoin may be on the verge of a massive rally, based on the historical volatility of the cryptocurrency dropping below 20, a level that has preceded significant price increases in the past. Pal also notes that Bitcoin's Bollinger Bands, a volatility indicator, are the tightest they have ever been, further indicating the potential for a strong upward movement. Ethereum is also highlighted as trading within a bullish pattern despite recent market corrections.
Goldman Sachs executive Raoul Pal believes that the financial industry's adoption of cryptocurrency, signaled by BlackRock's interest in a Bitcoin ETF, could open the door for trillions of dollars worth of money and derivatives to flow into the crypto space.
Bitcoin's vulnerability to contracting global liquidity is highlighted by Bloomberg Intelligence's crypto market analyst Jamie Coutts, who suggests that the cryptocurrency will only turn bullish when global liquidity levels expand, warning that it is unlikely to rise until liquidity reverses and anticipating that institutional investors will only show significant demand for digital assets once liquidity rises.
Bitcoin and other cryptocurrencies are rising as traders are optimistic about the potential of a US government shutdown, despite the risk of liquidity drainage.
Only 2% of companies leveraging the AI hype will survive, according to Bitpanda CEO, Eric Demuth, who compares the current cycle to previous goldrushes in the tech industry. While Bitpanda is also exploring AI projects, Demuth believes that the end of the boom will weed out the majority of players, leaving only the serious ones behind. Nonetheless, Demuth sees the current lull in the crypto market as an opportunity for banks to integrate and build financial innovation.
The next crypto bull market is expected to start in Q2 2024, coinciding with the Bitcoin halving, but macro factors will play a more significant role in sparking the uptrend, according to macro investor Raoul Pal.
The bitcoin and wider crypto market have lost momentum after a strong start in 2023, but billionaire Warren Buffett continues to profit from bitcoin, and there are predictions of trillions of dollars entering the crypto market, leading to a massive price bull run.
