Macro guru Raoul Pal believes that the shares of a US-based crypto firm may have an explosive breakout in the current bull market cycle.
In a video posted on Real Vision’s YouTube channel, the former Goldman Sachs executive suggests Coinbase’s stock has the potential to soar 10x.
[adinserter block="1"]“I think this bull market, the whole space will end up being $10 to $15 trillion, somewhere between that. So how much is Coinbase worth in that? I mean, it would not surprise me if Coinbase was worth $500 billion. It’s insane it’s so cheap, considering the size of the market that’s already there…
So if the [total crypto market cap] goes 5x, this probably goes 10x. That doesn’t sound stupid. That’s a hell of a trade for people. If people don’t want to trade the cryptocurrencies themselves, Coinbase is a hell of a trade.”
Coinbase stock was trading for $324 at market close on Monday, up more than 19% in 24 hours. The company has a current market cap of $81.17 billion.
Pal believes that the election of Donald Trump as US president and other victories by pro-crypto candidates to the US Congress positions Coinbase for a bright future.
Coinbase sunk tens of millions of dollars into pro-crypto super PAC Fairshake, a political action committee, in support of candidates who back digital assets.
Coinbase’s chief policy officer Faryar Shirzad recently celebrated the election results as a win for the industry.
Coinbase has been caught up in a legal battle with the U.S. Securities and Exchange Commission (SEC), which claims that the crypto exchange engaged in the unregistered sales of securities.
Says Pal,
“On the election, I thought it was pretty clear who won the election, Coinbase, because they had the super PAC, and Elon [Musk]. I mean, Tesla and Coinbase, you might as well just throw every other stock out you own and just buy those.”
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