The former hedge fund manager of Goldman Sachs and founder of Real vision, Raoul Pal, believes that social media experts are wrong and that the cryptocurrency market cycle will not end this year.
But things can get a bit tricky on the go.
In a Real Vision interview on Wednesday, Pal predicted that the current bull run won’t end in December, as it was spectacularly in 2015 and 2017, but instead will stretch sometime between March and June.
According to Pal, the Bitcoin (BTC), Ether (ETH) and Altcoins markets are likely to “go the most painful route”. may collapse twice in the next six months.
“My theory is that we are likely to have a sell-off and then everything will tear apart again because that is the most painful way and the markets tend to go the most painful way.”
Cointelegraph reported Thursday that Ecoinometrics’ on-chain data source suggests so If the current cycle follows the same pattern as 2017, the next BTC price spike could be as high as $ 253,800.
During the year 2021, Pal has become increasingly bullish on ether, calling it “the best trade” in August. He said the upcoming Ethereum 2.0 release and possible launch of an exchange traded ether fund in the first half of 2022 could be catalysts for a massive rally, Expanding access to the cryptocurrency market and attracting large institutions.
“Institutions typically make asset allocation decisions on a quarterly basis, and I expect we will see a large influx from January to March next year.”
“Everyone drops their ETH. You create this unbelievable imbalance between supply and demand in ETH, where only about 11% of the total ETH supply is available. Everything else is blocked for staking” ??? ?, called.
“All of that means we will likely see a longer cycle and I think it runs between March and June and that would be a new phase.”
Bitcoin was created in 2008 and has so far been halving in market cycles of around four years The reward is halved for each mining block, which reduces the supply of BTC.
Halving took place in 2012 and 2016, the last in May 2020. While Bitcoin has risen 7.3 times since then, more and more analysts believe that the cycles will no longer dominate if widely accepted.