Real Vision CEO Raoul Pal is updating his outlook on Bitcoin (BTC) after a massive rally amid US banking failures.
In a new Youtube interview with Anthony Pompliano, Pal predicts that Bitcoin could increase by nearly 80% in under a year.
Pal says he expects Bitcoin’s price will rise to as high as $50,000, in part, from short selling squeezes, as people wrongly bet on the king crypto declining in value.
A short squeeze happens when traders who shorted an asset decide to cut their losses in response to an unexpected price bump. The squeeze subsequently fuels more rallies.
Pal also disagrees with a recent prediction by former Coinbase chief technology officer Balaji Srinivasan that BTC will hit $1 million in just 90 days.
“[Srinivasan’s] got 0.0 chance of being right. But what he is doing is spending a million bucks or two million bucks on marketing what is an important concept. And I think that’s fine. I get it. My general thesis is the market is going to be squeezier than people expect. So I think we probably get to $50,000 faster than most people expect. Is it this year? Is it within 12 months? Probably.”
Pal says he expects Bitcoin to ultimately reach six figures, but does not suggest when.
“Over time, does it take out $100,000, does it take it $250,000? Of course, it does. It’s just a matter of when and the timing part is the red herring. You know if you’ve got a long enough time horizon and the trend rate of adoption and the rise in the price of the asset over time beats all other assets, you’re under no motivation to do anything else but hold.”
Bitcoin’s performance in 2023 is looking more similar to 2013 than 2019, which saw a correction, according to Pal. He says he anticipates the banking turmoil will prompt the Federal Reserve to increase liquidity, which has historically led to a strong Bitcoin performance.
“[Bitcoin] massively outperforms in the bull market and then pulls back when the liquidity comes out of the system again, but it keeps going up. So yes, I think there is a potential setup here for Bitcoin, and the whole crypto market actually, to be shockingly strong, more like 2013 than 2019. 2019 we had that big correction…
This time around, I don’t think we’re going to see that. I think we’re going to see all of the central banks falling into place because there are banking issues both in Europe and the US. And China has its own issues. So that they’ve all got the same issue which is debt. They’re all going to have to stimulate. I think it’s more likely to play out like 2013 which is very squeezy, then sideways consolidation, then very squeezy.”
Bitcoin is trading for $27,981 at time of writing.
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