Raoul Pal has an extensive background in financial markets. He was head of European equity hedge fund sales at Goldman Sachs and a portfolio manager at a hedge fund. More recently, he started his own crypto hedge fund, investment research firm and financial knowledge platform. His opinions on crypto are appreciated around the world and he constantly sends market insights to his 1 million followers on X.
Pal considered many factors to arrive at his prediction that Bitcoin will reach $1 million by 2025.
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He notes that Bitcoin has experienced exponential growth, highlighting the trend on a logarithmic chart. The trend is similar to the 2016-2017 bull market, where large amounts of capital came in and the halving supported the price increase.
Pal added that Bitcoin’s halving, which is expected to take place this week, could boost prices. In 2016 and 2020, the halving was the dividing line between small gains/consolidation and massive amounts of growth. In particular, Bitcoin’s price rose from around $800 just before the halving to a high of over $20,000 in 2016; the price went from around $10,000 before the 2020 halving to a high of almost $70,000. The halving could have a huge impact on the price if the Bitcoin market cycle continues to drive the market.
If you are interested in the Bitcoin market cycle, check out an in-depth analysis of the trend and whether it is real.
Another point Pal highlighted was the collapse of several major banks last year. The banks, such as Silicon Valley Bank (SVB) and First Republic Bank, failed due to mismanagement. Pal said the collapsed banks strengthen the case for institutional adoption of Bitcoin because the crypto is decentralized and secured by blockchain technology.
Finally, Pal sees Bitcoin Exchange Traded Funds (ETFs) as a huge driver for future growth. The ETFs allowed many new investors to purchase Bitcoin through the funds, which have been the most successful in the history of the ETF. The new buyers helped push Bitcoin’s price higher, hitting all-time highs (ATHs) in March.
“There’s a huge wall of money coming into (Bitcoin),” Pal said in October 2020. “It’s a huge wall of money, it’s just that the pipes aren’t there yet for people to do that, and that’s coming, but it is on everyone’s radar screen and there are a lot of smart people working on it.”
The Bitcoin ETFs have since provided the means for some of these institutions to invest in BTC.
Pal believes Bitcoin could reach $1 million by 2025. Currently, $1,000 is worth approximately 0.0155 BTC. If BTC went to $1 million, 0.0155 Bitcoin would be worth $15,500. This would mean a return of 1,450%.
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This article Here’s How Much $1,000 in Bitcoin Will Be Worth in 2025 If Raoul Pal’s Prediction is Correct originally appeared on Benzinga.com
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