Raoul Pal foresees a crypto market cycle extension as a result of the coming launch of ETH 2.0 and ETH ETF.
Raoul Pal, the Founder of Real Vision and previous Goldman and Sachs hedge fund manager stated that contrary to popular belief among the crypto community, the crypto market cycle is expected to extend in the following year, but that does not mean that this extension will be seamless.
Pal in an interview for Real Vision argued that his predictions dictate a bull run that does not end in December but is likely to extend to either March or June and the history of 2015 and 2017 will not repeat itself this time around.
Raoul Pal has notably become progressively bullish for Ethereum (ETH) as according to him is the best trade and with the launch of Ethereum 2.0 and hopefully, an Ethereum (ETH) Exchange-Traded Fund (ETF), a spur of a considerable bull run is likely to occur, thus attracting more institutions and individuals to engage in the crypto industry. Pal added that over the first quarter of 2022, massive inflows are to be expected due to the Ethereum (ETH) developments.
Pal said that “everybody is staking their ETH. It’s creating this incredible supply and demand imbalance in Ethereum (ETH) where there’s only about 11% of the total Ethereum (ETH) supply available. Everything else is locked up for this staking.” According to him, this means that an extension of the crypto market cycle is definitely warranted, bringing about a new phase that could last sometime between March and June.
Since its inception in 2009, Bitcoin (BTC) has moved in four-year market cycles, centered on the halving where Bitcoin (BTC) supply is decreased due to the halving of the mining block reward.
Halvings took place in 2012, 2016, and lastly in 2020 in May when the crackdown happened. Nonetheless, many hold that these cycles will slowly fade as Bitcoin (BTC) becomes increasingly more prominent.
Also read: NFTs Are The Future of Gaming Says EA CEO