Real Vision CEO Raoul Pal says Bitcoin’s new bull cycle could be far bigger than most are expecting.
In a new interview with Lark Davis, Pal says this bull run will be much different than the last due to an influx of institutional investors moving into the space.
“It is, I think, gigantically different. Firstly, look at the acceleration of this post-halving versus the previous one. It’s faster, which none of us expected. We were all expecting the slope to be less. So far, not true. Now, it’s early days. So that’s interesting to me.
Also, the structure of the market before was retail investors. Now here we’ve got institutions. Some of them will buy and hold, but as you bring in hedge funds, you’ll start bringing new supply into the market because they’ll trade it more and they’ll trade it in big size. So they’ll be selling some, buying it back, selling some, getting short.
That’s a different structure than we’re used to. What that actually does is lower the volatility of Bitcoin over time. So the texture and feel of Bitcoin will be different. Over time, the next cycle, the returns will be significantly lower in terms of percentage returns. This one, I have a hunch that this will be bigger than anybody imagines…
The structure of the market is changing. But I have a feeling that this is going to be a little more shocking than people imagine… If I just take the log chart and put regression lines on it, if it gets to two standard deviations overboard which is roughly where it got to the last two peaks, that’s a million bucks.”
Besides the growing interest of institutional investors in Bitcoin, Pal expects an exchange-traded fund of the flagship cryptocurrency to further contribute to the rally.
“It’s coming (Bitcoin ETF). It’s coming soon. And when it comes, it’s going to give another whole leg into this space because there are a lot of people who are not comfortable paying massive premiums for Grayscale (Bitcoin Trust).”
Pal also expects acquisitions in the crypto space to rise with the small cryptocurrency hedge funds being the prime targets.
“I am also hearing incredible stories of these massive hedge fund platforms trying to buy every single independent crypto hedge fund to add it to their platform…
Most of these funds are small. They are like $20 million funds and suddenly they are going to be $200 million funds.”
212 Interactions, 4 today