The latest comments by macro investor Raoul Pal show that he is confident that the latest Bitcoin rally has just kicked off an institutional-investor-led bull market. According to him, BTC may explode to $150,000 by November 2021. The founder and CEO of Global Macro Investor and Real Vision added that BTC at $150K is the most conservative scenario.
Pal thinks that bitcoin can even surge to $250K as a result of large amounts of institutional money that is currently flowing into the market. That possibility together with the current market scenario is what makes the current bitcoin rally quite different from the 2017 crypto bubble. Last time, the crypto rally was driven primarily by retail investors who were speculating on how high bitcoin could go.
Raoul said that most of bitcoin’s additional supply is getting absorbed by Square and PayPal, who recently adopted crypto services and Grayscale. He is convinced that the resulting supply squeeze is the main catalyst for Bitcoin’s latest surge. While highlighting the macroeconomic factors that are currently playing in bitcoin’s favor, he commented:
“I’ve never seen a market with this supply and demand imbalance before.”
Despite news on the COVID vaccine increasing hopes of a rapid economic recovery, governments might have to release more monetary stimulus to sustain their economies. These stimulus packages will eventually lead to the devaluation of the involved fiat. Pal thinks that this and low-interest rates might propel bitcoin’s price to new all-time highs.
“It’s life-changing. No other asset has an upside of 5x, 10x, 20x in a short space of time.”