Bitcoin price will reach $50,000 in less than a year, says this economist
The bitcoin price could see a boost amid a widespread financial crisis that has already led to the collapse of several banking giants and put many others at risk, according to Raoul Pal, Real Vision CEO and a former hedge fund manager.
Pal sees the current situation as a potential opportunity for Bitcoin to establish itself as a safe haven and gain greater mainstream acceptance.
During a recent interview with Anthony Pompliano on YouTube, Pal shared his optimistic forecast that Bitcoin’s value could rise by nearly 80% in less than a year. Pal expects the alpha coin’s value to weaken to as much as $50,000, in part due to short selling squeezes, where individuals wrongly speculate on Bitcoin’s fall.
Why Raoul Pal Thinks Bitcoin Price Will Skyrocket
According to Pal, the rise in Bitcoin’s price can be attributed in part to the fact that people who bet on the decline by short selling were proven wrong, resulting in short selling squeezes.
A short selling squeeze can occur when the price of the asset unexpectedly rises, causing short sellers to panic and buy back the coins they borrowed to minimize losses. This buying pressure can drive up the price of the asset further, creating a self-perpetuating cycle that leads to a sharp increase in value.
In the case of Bitcoin, such squeezes have played a significant role in driving up the price in the past, as investors have mistakenly bet against the cryptocurrency’s resilience and long-term potential.
As more investors recognize Bitcoin’s value and embrace it as a legitimate asset class, short-selling pressure may become an increasingly common trend, leading to even greater upward pressure on Bitcoin’s price.
Image: Common Cents Mom
Pal said:
“My general thesis is that the market is going to be more squeezed than people expect […] so I think we’ll probably get to $50,000 sooner than most people expect. Is it this year? Is it within 12 months? Probably.”
Bitcoin price explosion on the horizon?
Pal predicts that the cryptocurrency industry and the Bitcoin price, in particular, could experience one exponential increase in the future. As people lose faith in traditional banking systems and seek alternative solutions, they are increasingly aware of the benefits offered by cryptocurrencies, especially in times of economic crisis.
Pal notes that this growing interest in cryptocurrencies is similar to the trend seen in 2013, which led to a significant increase in Bitcoin’s value.
BTC total market cap inched up a little and is now at $544 billion on the daily chart at TradingView.com
In light of these developments, Pal believes the crypto industry is poised for significant growth in the coming years, with Bitcoin leading the way. However, he also notes that this growth is likely to be accompanied by increased regulation and control from authorities and financial institutions.
Despite this, the CEO remains optimistic about the future of Bitcoin and the cryptocurrency market as a whole, citing its potential to revolutionize the financial industry and provide greater financial freedom.
At the time of writing, the Bitcoin price was trading at $28,262, up 14% in the past seven days, data from crypto market tracker Coingecko shows.
– Featured image from the US Navy
