Raoul Pal: Crypto Bull Market Is Entering The Best Part Of The Cycle
According to a respected macro analyst and ex-Goldman Sachs executive Raoul Pal, Bitcoin and crypto are on the verge of stepping in to the part of the bull cycle where the markets really trend higher.
Pal was a guest in the recent Crypto Banter episode, where he shared his views on the crypto markets, and opined that next step is a move to higher levels, after steep correction period in the past months.
“We are in the teeth of the best part of the entire cycle. The price is going to go up regardless. We threw all the FUD (fear, uncertainty and doubt) at it over the summer. That was the 50% correction. Basically, the market’s been trading sideways in a volatile range since March for Bitcoin and May for the rest of the market. This is the point. If you look at all of the post-halving cycles, this quarter is where all the games are made.”
The analyst also said that there is a significant driver that can move the digital asset markets to higher levels early next year.
“The big factor that people need to think about is how institutions allocate. It’s quarterly, and it’s annual. So we will see [in] this bull run everybody who hasn’t yet invested or wants to increase their weightings, that will come in jam and generally, every one with new shiny P and L (profits and losses), the hedge funds, too, allocate. I think January, February and March much more potential. It could go in as far as June.”
Pal also said that he is keeping a close eye on the TOTAL chart, which keeps track on the valuation of all crypto assets. The chart is trading within a long-term ascending channel and could soar by as much as 400% by the end of the bull market, according to the analyst.
“It basically is two standard deviations oversold versus the historical trend. That’s the total crypto market cap. So it looks like if you follow the trend and all of these exponential assets do the same thing, they get overbought [to the] top of the trend. My guess is this goes from $2 trillion to $8 to $10 trillion at the end of this cycle, and then we correct.”
