Former Goldman Sachs executive Raoul Pal thinks that right now in the fourth quarter of 2021 is when all the juiciest gains are to be made in the crypto markets.
Speaking on an episode of Crypto Banter, the Real Vision Group chief says he believes that the launch of the new Bitcoin futures ETF is potentially irrelevant at this point in time as BTC was already set up for bullish moves either way. Pal asserts that the crypto markets are in the most opportune moment of the whole cycle.
“We are in the teeth of the best part of the entire cycle. The price is going to go up regardless, we through all the FUD at it in the summer, that was the 50% correction, basically the market's been trading sideways in a volatile range since Mach for Bitcoin and May for the rest of the market, Ethereum. And this is the point, if you look at all of the post halving cycles, this quarter is where all the gains are made, I cannot stress that enough, that this is the time. I keep adding to my risk. Every penny that I get in goes into this…”
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Pal notes that the nature of financial institutions is to primarily allocate new capital each quarter and new year. Because of this, he also thinks that new annual allocations from institutions and hedge funds will give January, February, and March a lot more bullish potential than perhaps the average crypto investor realizes. At the latest, the macro investor sees June as being a potential ending point for the bull cycle, before “excess speculation and the usual things” take the air out of the markets. Ultimately, Pal sees those expecting a market top in December to be caught off guard when new money flies into the space at the beginning of 2022.
“Here's these two schools of thought: It tops in December or it tops later, and December is going to be a period where you're not going to know, and there will be a bunch of people freak out and say ‘this is the end of cycle', they might be right. What I think will happen is then January, February, it just explodes higher as all this new capital comes in.”
