Raoul Pal, a well-known figure in the finance world, is predicting a strong rally in the crypto market before the end of 2024.
A Santa Claus Rally for Crypto?
Pal, formerly of Goldman Sachs, thinks Bitcoin and other cryptos could see significant gains in the last half of December, mirroring the traditional “Santa Claus rally” seen in the stock market. This rally typically involves price increases in the final five trading days of December and the first two of January. He expects a strong rally leading into the year’s end, with the real action happening in the first quarter of 2025.
The “Banana Singularity”
Pal also believes the biggest crypto price surge of this market cycle is yet to come, possibly around March next year, coinciding with a potential Federal Reserve interest rate cut. He playfully refers to this as the “banana singularity,” a point where things get wildly unpredictable and prices go crazy.
A Potential Year-End Correction?
Despite his bullish prediction, Pal cautions that a temporary correction might occur at the end of the year after the rally. He points to historical patterns, linking tightening global liquidity to Bitcoin price drops. He uses the example of the Trump administration, noting that a period of dollar strengthening and rising interest rates was followed by the opposite trend as the year ended. He believes a similar correction is likely.
Current Market Conditions
At the time of writing, Bitcoin is trading below $95,000, down over 11% in the past week.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies.
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