Macro guru Raoul Pal predicts that Ethereum (ETH) can skyrocket over 480% from its current price of $3,427 in the coming months.
In a new Bankless episode, the former Goldman Sachs executive unveils how he derived a $20,000 price prediction for the leading smart contract platform.
“My price prediction has been ETH north of $20,000, and that’s pretty simple. All I did is just map over the ETH chart to the Bitcoin 2017 chart. They work perfectly, and it gives you $20,000. There’s no great science to that, but it feels about right.”
Earlier this month, Pal called Ethereum the “greatest trade’ as changes in the fundamentals of the second-largest cryptocurrency work to significantly reduce the supply of ETH.
“Basically, there’s 13% of all the free float of Ethereum available. Everything else is being staked, locked and hoarded. They’ve just made the supply more difficult. The supply is lower.”
Pal says Ethereum can reach his price target before March 2022.
Looking at Bitcoin (BTC), Pal says the leading cryptocurrency can also meteorically rise in the coming months.
“I’ve also mapped the Bitcoin price versus Bitcoin 2013. They look pretty similar. There’s a bunch of other ways I’d do it with Bitcoin with log charts, regression analysis, stuff like that. Generally speaking, I think it’s somewhere between $250,000 to $400,000, with an outside chance of a million [dollars] if we get an extended cycle.”
The macro guru names two huge catalysts that can fuel the rally of the king cryptocurrency.
“Don’t forget, they usually go up 5 to 10x in the last three months of the year. We haven’t even got to the all-time high, but let’s say Bitcoin goes up 5x from the $60,000 high. That’s $350,000. That would be a very normal rally for year-end, considering we’re about to have an ETF (exchange-traded fund). And if I’m right, we might see the central bank pivoting to more printing. They may not print more money this year, but they’ll start talking about it. Those two things alone are enough to drive Bitcoin to $350,000.”
I
Check Price ActionDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/flat_tesseract
