Former Goldman Sachs Exec Raoul Pal Says Crypto Bull Run Is Coming: ‘Leverage Is Cleared Out And Then The Real Run Starts’

Former Goldman Sachs executive Raoul Pal is expressing confidence in the cryptocurrency industry’s potential, envisioning an upcoming bull market that will propel digital assets to fresh record levels.

During an “Ask Me Anything” session on YouTube, Pal shared his view about the short-term market turbulence and said that cryptocurrencies are primed for a substantial upswing later this year.

According to him, one key factor is the recent green light given to spot market Bitcoin BTC/USD ETFs. The introduction of these ETFs has spurred substantial demand, with ETF providers actively encouraging their clientele to participate.

“All of the preorders for the ETFs have now been filled — all of these ETF providers have been going to all of their clients, begging them, ‘You need to do this.’ Everyone’s done that. There’ll be some follow-on next week, a lot of Grayscale Bitcoin trust guys are unwinding, and some will wait a few days to see if the market is stronger or whatever, so that goes on for a while,” Pal said. 

Also Read: MicroStrategy’s Michael Saylor Netted $20 Million In Sell-Off Prior To Bitcoin ETF Launch

Pal estimated that this demand surge could reach up to $2 billion. Nonetheless, he cautioned investors about potential market fluctuations, including the possibility of 30% to 35% pullbacks, due to the heightened demand.

“You’ve then brought forward a lot of demand. By the end of it, maybe it’s a $1 billion, maybe it’s $2 billion of demand you’ll have brought forward, so then who’s the buyer? You’ve got the people who front ran this, who want to sell, so you’re going to see volatility, part of that is expect 30%-35% pullbacks,” he added. 

Pal elaborated that such corrections often manifest when the market attains a specific Fibonacci level during the initial stages of a bull market.

“Could be less, but just expect them and that often happens when you get to this kind of 0.618 Fibonacci level in the first leg of the bull run. It often corrects sharply [and] people get washed out,” he said. 

“Leverage is cleared out and then the real run starts, and the real run is the run to all-time highs and beyond. That usually starts around the halving, so I’m guessing there’s maybe a month or two of chop,” he added. 

At the time of writing, Bitcoin was trading at $42,862.91, down by 3 percent in the last seven days.  

Now Read: Bitcoin’s Rocky Road Ahead: Analyst Warns Of Post-ETF Price Plunge

Photo: Shutterstock

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