Former Goldman Sachs executive Raoul Pal believes the crypto market will recover by the end of 2024.
In a new interview with crypto trader Scott Melker, the macro guru says that based on historical precedence, Bitcoin (BTC) and other digital assets could generate larger gains over the past week and half of December.
A rally at this time of year is often called a “Santa rally”, a financial term used to describe a calendar effect on traditional stocks that historically have risen over the last five trading days of the year in December and the first two trading days. trading days of the new year.
“Normally what happens at this phase is that we should recover quite strongly at the end of the year in all areas. But the real match is then played in the first quarter.
Pal also believes that the most explosive rally of the current market cycle is yet to come and could occur next year, perhaps around the March Fed meeting, during which rates could be reduced.
“I think my next phraseology will be the banana singularity, that’s when everything goes bananas…
We are therefore not yet at the point of singularity of the banana zone. This will come too. It’s probably during the Fed’s March that everything will become ridiculous.”
However, Pal also warns that there could be a temporary correction towards the end of the year after a rally due to tight liquidity. He believes that the growing money supply is a catalyst for the price of Bitcoin, and that when it decreases, so does the price of the flagship crypto.
“Let’s look at the last Trump administration (of US President Donald). Thus, from September to the end of the year, the dollar recovered. From September to the end of the year, prices increased. Same story. It was all about tariffs and what he was going to do and how it was going to play out.
Almost exactly over the course of the year the dollar fell, rates fell. So I produced a chart showing that global liquidity has tightened and the lead time is 10 weeks, which should mean that at the end of the year we will get a correction.
Bitcoin is trading at $94,367 at the time of writing, down more than 11% over the past seven days.
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