The world of cryptocurrencies is the subject of intense speculation and analysis by financial experts such as Raoul Pal, former Goldman Sachs executive and current CEO of Real Vision.
Pal, known for his keen understanding of global markets, has presented his projections for the cryptocurrency market, outlining possible scenarios and pointing out the possible trajectory of Bitcoin and Ethereum.
Based on a probability analysis, Pal has suggested three main scenarios for the future of the cryptocurrency market.
-Consider that there is a 60% probability that the market is following a regular cycle, although with similar characteristics to the 2017 cycle, known for its high volatility.
-In addition, it contemplates a 20% probability of both an accelerated cycle, driven by retail demand, and a gigantic bubble, similar to the 2012-2013 and 2015 cycles, fueled by widespread participation and extreme market dynamics.
-On the other hand, highlighting the importance of investor perceptions, Pal questions the widespread belief of a shorter cycle, suggesting that the possible brevity could be linked to price increases rather than a shorter cycle length.
This vision challenges expectations about the next Cryptocurrencies market cycle
As for Bitcoin, Pal, along with Samson Mow, sees a significant bullish outlook that could take its price to an impressive $1 million.
This optimistic outlook is based on a combination of factors including supply, demand and price shocks, with a special emphasis on the flow of US institutional capital into Bitcoin.
On the other hand, in the case of Ethereum, analyzes point to a significant increase in long-term investor interest.
Furthermore, it is anticipated that Ethereum could surpass Bitcoin in 2024 in percentage growth, mirroring its performance during the 2021 cycle.
This is supported by its recent price increase and the expectation of the major EIP-4844 ‘protodanksharding’ upgrade, scheduled to launch early this year 2024, which JPMorgan analysts say could further boost its growth.
According to data from CoinMarketCap, the current price of Bitcoin (BTC) is $43,199.26, showing a decrease of -2.84% in the last 24 hours.
Furthermore, Bitcoin’s market capitalization during this period has decreased by -2.82%, standing at $846.3 billion.
Pal’s predictions offer an intriguing and optimistic view of the cryptocurrency market, presenting different possible scenarios and highlighting the bullish potential of both Bitcoin and Ethereum in the coming years.