In an interview with crypto analyst Lark Davis, former Goldman Sachs executive Raoul Pal explained why this year’s Bitcoin bull run is so different from the rally we witnessed in 2017.
It can get higher
Before Pal founded the macroeconomic and investment strategy research service Global Macro Investor (GMI) in 2005, Pal led the GLG Global Macro Fund in London for global asset management firm GLG Partners (now called “Man GLG”). Prior to that, Pal worked for Goldman Sachs, where he ran the European hedge fund sales business in Stocks and Equity Derivatives. He currently serves as the CEO of Real Vision, the finance and business video channel of which he co-founded in 2014.
In the April 2020 issue of the GMI newsletter, Pal explained why he believes that Bitcoin, which he calls “the future”, could have a value of $ 10 trillion one day. In this issue, Pal said that the idea of a $ 10 trillion valuation for Bitcoin isn’t all that crazy:
After all, it’s not just a currency or even a store of value. A completely reliable, verified, secure financial and digital value accounting system that can never be created outside of the cryptographic algorithm. This is nothing more than the future of our entire exchange system and the money itself and the platform on which it runs.
Pal: “The 2020 Bitcoin rally is very different from what it was in 2017.”
Pal told Davis about the current Bitcoin bull run that raised the price to around $ 25,000:
I think this is very different. First, look at how fast this halving is compared to the previous one. Faster, which none of us expected. We all expected less slope. This is interesting to me. Also, the previous structure of the market was retail investors. Now, we have institutions here. Some will buy and hold, but as they bring in hedge funds, they will begin to bring new supply to the market because they are trading more and will be trading on a large scale. So, they’re going to sell some, buy back, sell some, you know, they’re going to be exposed. This is a different structure than it used to be. In fact, what this does is reduce the volatility of Bitcoin over time, so the texture and feel of Bitcoin will differ over time.