According to Raoul Pal, Real Vision CEO and former hedge fund manager, Bitcoin price could rise during a worldwide financial crisis that has already resulted in the collapse of some banking titans and has put many others at risk.
Pal sees the current scenario as a chance for Bitcoin to establish itself as a safe haven asset and achieve wider adoption.
Pal recently announced his optimistic forecast for Bitcoin’s value to rise by about 80% in less than a year during a YouTube interview with Anthony Pompliano. Pal predicts that the alpha coin’s value will skyrocket to $50,000, thanks in part to short selling squeezes, in which people incorrectly predict Bitcoin’s demise.
According to Pal, the rise in Bitcoin’s price can be ascribed in part to the fact that short sellers who gambled on its depreciation were proven wrong, resulting in short selling squeezes.
When the price of an asset unexpectedly rises, short sellers panic and buy back the coins they borrowed to minimize their losses. This buying pressure can drive up the price of the item even more, producing a self-perpetuating cycle that results in a significant increase in value.
In the case of Bitcoin, such squeezes have historically played a crucial part in driving up the price, as investors have bet incorrectly against the cryptocurrency’s durability and long-term potential.
If more investors understand Bitcoin’s worth and accept it as a legitimate asset class, short selling squeezes may become more regular, putting even more upward pressure on Bitcoin’s price.
“My general premise is that the market will be squeaker than people predict […] thus I think we’ll go to $50,000 faster than most people expect,” Pal remarked. Is this the year? Is it within the next 12 months? Probably.”
Pal believes that the cryptocurrency business, and particularly the Bitcoin price, will witness an exponential rise in the future. People are becoming more aware of the benefits of cryptocurrencies as they lose faith in existing financial institutions and seek alternative solutions, particularly during times of economic crisis.
Pal observes that the growing interest in cryptocurrencies is comparable to the trend experienced in 2013, which resulted in a big increase in the value of Bitcoin.
In light of these events, Pal feels that the crypto industry, led by Bitcoin, is primed for tremendous expansion in the next years. But, he warns that this expansion will almost certainly be accompanied by more regulation and scrutiny from governments and financial institutions.
Despite this, the CEO is optimistic about Bitcoin’s and the cryptocurrency market’s future, citing its potential to change the financial system and bring greater financial independence.