Bitcoin caught fire in 2020, after collecting almost 60% so far, to completely reduce the return of the S&P 500 by 7%. According to Raoul Pal, former Goldman Sachs GS,
hedge fund manager, the world’s largest cryptocurrency is still heating up.
Heated as reaching $ 1,000,000 within five years.
That’s quite an explosion of $ 11,393, where bitcoin BTCUSD,
is currently sitting, but Pal in an interview with Stansberry Research says the high seven-figure goal is realistic.
“Just from what I know from all the institutions and all the people I’m talking to, there’s a huge wall of money for that,” said Pal, who is currently CEO of Global Macro Investor. “The pipes aren’t there yet to allow people to do it, and that’s yet to come, but it’s on everyone’s radar and a lot of smart people are working on it.”
He explained that recovery from the pandemic would take longer than many expected, and the global economy was entering a “bankruptcy phase” that he said would stimulate bitcoin.
“We have more problems coming to Europe, the United States and elsewhere,” Pal said. “And companies don’t have enough cash flow, they’re closing in on the crowds … The only answer is more than the central banks, so I started buying more and more bitcoins.”
How much more?
Pal said more than half of his portfolio has been invested in bitcoins, compared to his previous positioning on an equal footing with money, gold and stocks.
“My trading positions are relatively small because I don’t think there are as many opportunities as there are in bitcoin,” Pal said. “So really, mostly a little money, a little gold GOLD,
and bitcoin. And I’m even toying with the idea of selling my gold to buy more bitcoins. “
See the full interview:
Pal is not the only bitcoin bull calling for big things to come.
JC Parets of the All Star Charts blog did a technical review of the trade recently and decided that if history repeats itself, bitcoin is about to deliver largely to the crypto crew.
See his chart:
“If this was one of those tests you took in elementary school where they ask you what’s next for this model, you’d say Breakout and then Uptrend, right?” Pareth wrote in a blog post. “He hasn’t done much since it came out over 10,000. But if we’re above that, I think it’s been a long time. “
Like Pal, Parec said he believed bitcoin could be a “game-changing player.”
At the last check, bitcoin was mostly on Thursday, while the Dow Jones Industrial Average DJIA,
Nasdaq Composite COMP,
and S&P 500 SPX,
they were all lower.