The current financial crisis has already led to the bankruptcy of three banking giants and threatened other banks. In this almost chaotic context, the big winner could be Bitcoin.
The number 1 crypto asset by market capitalization has been on an uptrend since the start of the crisis. Real Vision CEO Raoul Pal believes that Bitcoin price could hit $50,000 thanks to this stressful environment in less than a year.
The banking crisis is an opportunity for bitcoin
Raoul Pal believes that Bitcoin has a unique opportunity to gain acceptance as a safe haven asset in the eyes of the general public. The Real Vision CEO and former hedge fund manager agrees with several other observers who liken BTC to gold as a safe haven asset in times of crisis.
Answering questions from Anthony Pompliano on Youtube, Raoul Pal explained his point of view on the financial crisis that is currently taking hold in the traditional sector. According to him, this is an opportunity to invest in Bitcoin which should continue on its upward trend.
Pal is optimistic that the value of the cryptocurrency could explode with a nearly 80% increase in less than a year. The number one digital asset is expected to reach $50,000 according to Pal’s forecast.
Why Pal is so optimistic about the price of Bitcoin
Raoul Pal noticed that many people are pessimistic and bet on the fall in the price of BTC at the start of the crisis. These people bet on a short sale, resulting in a compression of short sales instead.
According to Pal’s predictions, sellers who are faced with an unexpected rise in the price of crypto will change their minds and switch positions to buy back the tokens to minimize their losses. This panic will create buying pressure that will drive up the price of BTC. As a result, a self-perpetuating cycle will be created and will cause a sharp rise in the value of the asset.
This is not the first time that Bitcoin has found itself in a similar situation. In the past, BTC has often faced investors betting on its decline during a market tightening, causing its price to rise sharply.
More investors embracing Bitcoin as a legitimate asset class could lead to short selling cuts more often, which is good for the cryptocurrency.
Raoul Pal added that the global market will tighten even more, which is going to see BTC hit $50,000 faster than you might expect. Indeed, it could be in less than a year according to Pal.
An explosion in the price of bitcoin and the crypto market would be in prospect
Raoul Pal believes that the global crypto market could see an exponential increase in the future. It starts from an observation: people’s confidence in traditional banking systems has dropped dramatically.
The latter realize the advantages of the crypto industry and are more inclined to take advantage of it. Since they are looking for alternative solutions because of the banking crisis, people’s interest in cryptocurrency continues to rise.
The former hedge fund manager draws a parallel between the current situation and that of 2013 during which the price of Bitcoin had experienced a significant increase.
Bitcoin is on the verge of another boom like 2013 according to Mr. Pal’s predictions. The entire crypto market should also benefit from this growth.
However, the presence of regulation by government authorities and financial institutions will have to be factored into the equation. It is a lesser evil to benefit from the many advantages of cryptography.
At the time of this article going to press, the BTC/USD pair is trading at $28,171 on BitStamp. This represents an increase of 3.87% over the last week.
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