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Ex Goldman Sachs Hedge Fund Manager Considers Bitcoin Volatility as a Positive Factor

Ex Goldman Sachs Hedge Fund Manager Considers Bitcoin Volatility as a Positive Factor

Raoul Pal, the Ex Goldman Sachs hedge-fund manager, thinks Bitcoin volatility should be considered a good thing for the market. The CEO of Real Vision TV, Raoul Pal, gives an opinion about Bitcoin volatility calling it a feature that drives the risk-reward. Talking at a virtual event this week, Pal spoke about the world’s most significant cryptocurrency price changes. Bitcoin is not inclined to stable movements similar to other assets like gold and silver. Instead, Bitcoin can witness moves of up to 5% per day as usual.

Raoul Pal opined that investors should not be scared of Bitcoin’s volatility. He instead argued that investors should look at the volatility positively. Pal said at an “Investing in Crypto” conference hosted by MarketWatch that investors should change their mindset and look at the volatility as a positive feature for the cryptocurrency. Pal contended that one could not possess compounded annual returns of 230% without the price volatility when chatting about the risk-reward part. He further continued that volatility acts as a friend on this occasion. Bitcoin has witnessed an increase of over 113% in 2021 alone. Thus, making it one of the strongest gainers in the financial markets this year. 

Raoul Pal Says Bitcoin is the Best Performing Asset

Raoul Pal advocates that Bitcoin still relishes predominant upside while volatile even with enormous swings in the market. The recent increase of Bitcoin has witnessed financial institutions take notice of the possible gains in the market. Moreover, Pal reveals that everybody is getting connected, is connected, or is in the process of doing it. Pal concluded by speaking about Bitcoin as the best performing asset class.  

The former hedge fund manager elucidated that most people in the crypto world don’t support or like regulation. However, he favors it as long as it is a “light-touch” oversight that enables people to develop on innovation. He doesn’t expect crypto regulation to hurt prices but instead draw more capital in the space and offer confidence to the industry. Raoul Pal feels Bitcoin volatility is attracting more investors towards the leading cryptocurrency. Contrarily, earlier this month, JPMorgan stated a drop in Bitcoin’s volatility has made it more attractive to institutions, which could boost its adoption.

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