Real Vision CEO Raoul Pal believes conventional wisdom on when the current crypto cycle will end is missing the mark.
“Markets are all about psychology, and if everyone expects something to happen, it won’t happen. So everybody’s kind of got in their heads that the cycle ends in December because that’s what it did in ‘13 and that’s what it did in ‘17.
My guess is that we probably have a sell-off, and then it rips again because that is the path of most pain and markets tend to take the path of most pain.”
However, the imminent launch of an Ethereum ETF and ETH 2.0 could be catalysts for a massive rally that would extend the crypto cycle to June, according to Pal.
“The retail ETF is coming. It’ll come out in the next couple of months, so we’re going to broaden access and bring [in] institutions. Institutions tend to make asset allocation decisions by quarters, and my guess is [during] January to March quarter next year we’re going to see a huge inflow.
I think the other big driver of this market is going to be ETH 2.0. The reason being is everybody is staking their ETH. It’s creating this incredible supply and demand imbalance in ETH where there’s only about 11% of the total ETH supply available. Everything else is locked up for this staking…
All of that means that we’re likely to see an extended cycle, and I think it extends into between March and June, and that would be a new phase.”
Pal goes on to discuss the expanding nature of the crypto markets.
“Crypto is currently $2 trillion as of today. I think it’s pretty reasonable to expect it to go to $200 trillion. So that’s a 100x. None of us have seen anything like an entire asset, which is a rich and deep asset class with many things, going up a 100x.
That’s how I try to explain it to people. Don’t overthink it. Everybody can make money. It’s all about time horizon [and] understanding the volatility. Take the risk that you can afford to take.”
IDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
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/Yuganov Konstantin