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According to Pal, the high demand experienced in the Ethereum ecosystem coupled with the burning recently introduced through the EIP-1559 upgrade will fuel Eth to a new ATH.
In a YouTube interview with BitBoy Crypto, a former Goldman Sachs executive who founded Real Vision Raoul Pal, says Ethereum is better positioned to outshine Bitcoin in the next bull market. According to Pal, a major crypto breakout is bound to happen in the next few weeks. Whereby he predicted Ethereum will mirror Bitcoin’s 2017/2018 bull market and hit $20k.
On one hand, Pal thinks Bitcoin will rally above $200k on the lower end by the first quarter of 2022. And on the other hand, he thinks the bull market may extend to see the asset hit $400,000, which is more likely.
Raoul Pal: Ethereum and Bitcoin’s Market Outlook
According to him, the high demand experienced in the Ethereum ecosystem coupled with the burning recently introduced through the EIP-1559 upgrade will fuel Eth to a new ATH. “There’s tons that have gone into just holding, tones that are locked up in DeFi, tons that are locked up in NFTs, and you’re left with, as of today, 11% of the entire supply of Etheream available and it’s going down every day, and the demand is going exponential. The only outcome is an exponential price rise. There’s no other outcome,” Pal explained.
Pal, however, cautioned that there are people in the stock market who do not want the attention the crypto industry is getting from investors. Moreover, more hedge fund managers have directed more capital to get exposed to the crypto market due to the high returns.
“They don’t want Bitcoin to go to those high numbers because if Bitcoin goes to $400,000, that would put the stock market in very, very serious trouble. Investors would be pulled to crypto more than the stock market,” he said.
The global crypto market cap is retesting its all-time high of around $2.4 trillion. However, Bitcoin remains over $100 billion below the $1 trillion market cap attained at the beginning of the year. According to market analytics provided by CoinGecko, Bitcoin has a market capitalization of $895,493,655,481, whilst Ethereum has a reported valuation of $414,174,352,086.
Notably, Ethereum has gained approximately 710%, 38%, and 17% in the past year, 30 days, and 14 days respectively. Bitcoin on the other hand has gained 307%, 19%, and 6.7% in the same period. This shows the Pal’s theory may materialize in the coming few months.