The price of Bitcoin can see a boost in the middle of the widespread financial crisis that has led to the collapse of several banking giants and put many others 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 mainstream acceptance.
During a new interview with Anthony Pompliano on YouTube, Pal shared an optimistic projection that the value of Bitcoin could increase by almost 80% in less than a year. Pal anticipates that the value of the alpha coin will balloon to as much as $50,000, partly due to short selling squeezes, where individuals wrongly speculate on the collapse of Bitcoin.
Does Raoul Pal Think Bitcoin Price Will Skyrocket
According to Pal, the increase in the price of Bitcoin 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 squeeze short sale can occur when the price of an asset suddenly rises, causing the short seller to panic and buy back the borrowed coins to minimize losses. This buying pressure can increase the price of the asset, creating a continuous cycle that leads to an increase in value.
In the case of Bitcoin, these types of squeezes have played a significant role in driving up the price in the past, as investors have mistakenly bet against the cryptocurrency’s durability and long-term potential.
As more investors recognize the value of Bitcoin and embrace it as a legitimate asset class, short selling squeezes may become an increasingly common trend, leading to even greater upward pressure on the price of Bitcoin.
Image: Common Cents Mom
Pal said:
“My general thesis is that the market will be smaller than people expect […] so I think we might get to $50,000 sooner than expected. What is this year? What in 12 months? Probably.”
Bitcoin Price Explosion On The Horizon?
Pal predicts that the cryptocurrency industry and the price of Bitcoin, in particular, can experience a exponential surge in the future. When people lose faith in the traditional banking system and look for alternative solutions, they become increasingly aware of the benefits offered by cryptocurrencies, especially in times of economic crisis.
Pal noted that the growing interest in cryptocurrencies is similar to the trend seen in 2013, which led to an 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 this development, 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 may be accompanied more regulations and scrutiny from the government and financial institutions.
Despite this, the CEO remains bullish on 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 price of Bitcoin is trading at $28,262, up 14% in the last seven days, data from crypto market tracker Coingecko shows.
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