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Investing.com – Former Goldman Sachs executive Raoul Pal says a massive bubble cycle could be on the horizon for cryptocurrency markets. Pal, managing director of Real Vision, says that while he thinks the current market cycle is probably normal, there is also a 20% chance that it is a “gigantic bubble cycle.”
“Here are my odds: 60% chance that this is a normal cycle, kind of like the last cycle, but maybe a little more like the previous cycle – like 2017 which went a little crazy. It “There’s a 20% chance that everything will happen up front because we have all the retail demand, and the cycle will actually be shorter than expected.”
“If you think the previous cycle was actually a little bit delayed compared to people’s expectations, maybe this one is delayed in terms of time. The other possibility I have, the other 20%, is that this is a gigantic bubble cycle, somewhere between the 2012-2013 version and the 2015 version, because now everyone can participate and total madness will ensue.”
“I don’t know which of these three scenarios will happen, but they all have a good chance of happening.”
According to Pal, investor sentiment favors a shorter cycle. However, he adds that while they may be right about rising prices, they are probably wrong about the length of the cycle.