Bitcoin Price Will Hit $50,000 In Under A Year, This Economist Says
Bitcoin’s price could rise amid a widespread financial crisis that has already led to the collapse of several banking giants and put many more at risk, according to Raoul Pal, CEO of Real Vision and a former hedge fund manager.
Pal sees the current situation as a potential opportunity for Bitcoin to establish itself as a safe haven asset and gain greater popular acceptance.
during a recent interview With Anthony Pompliano on YouTube, Pal shared his optimistic projection that Bitcoin’s value could soar by nearly 80% in less than a year. Pal anticipates that the value of the alpha coin will rise to as high as $50,000, in part due to short selling squeezes, where individuals mistakenly speculate on Bitcoin’s decline.
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 its decline by short selling were proven wrong, resulting in short selling squeezes.
A short selling squeeze can occur when the asset price unexpectedly rises, causing short sellers to panic and buy back the currencies they borrowed to minimize their losses. This buying pressure can further drive up the asset’s price, creating a self-perpetuating cycle that leads to a sharp rise in value.
In the case of Bitcoin, this type of tightening has played a significant role in pushing the price higher in the past, as investors have mistakenly bet against the cryptocurrency’s resilience and long-term potential.
As more investors recognize the value of Bitcoin and embrace it as a legitimate asset class, short selling could become an increasingly common trend, leading to even greater pressure on the Bitcoin price.
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“My general thesis is that the market will be tighter than people expect. […] so I think we’ll probably get to $50,000 faster than most people expect. Is it this year? Is it in 12 months? Probably.”
Bitcoin price explosion on the horizon?
Pal predicts that the cryptocurrency industry, and the price of Bitcoin in particular, could see a downturn exponential increase in the future. As people lose faith in traditional banking systems and look for alternative solutions, they are becoming 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 the value of Bitcoin.
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 that 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 scrutiny governments 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, Bitcoin price is trading at $28,262, up 14% over the past seven days, shows data from crypto market tracker Coingecko.
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