Raoul Pal Predicts Ethereum to Surpass Bitcoin in Dominance by 2024
Esteemed market analyst Raoul Pal, Founder and CEO of Global Macro Investor, has made a bold prediction about the future of the cryptocurrency market. According to Pal, Ethereum (ETH) is set to outperform Bitcoin (BTC) in a significant way in 2024, marking a major shift in the crypto landscape.
Pal’s prediction is based on a thorough analysis of historical market trends. He points to the 2021 bull run, where Bitcoin initially outperformed Ethereum. In February 2021, Bitcoin reached $44,000 while Ethereum lagged behind at around $1,400. However, over the next nine months, Ethereum saw a massive surge of 245%, compared to Bitcoin’s more modest 45% rise.
Pal believes that this trend is not an isolated incident, but rather a precursor to what we can expect in 2024. With Bitcoin currently hovering around $44,000 and Ethereum at $2,300, similar patterns are starting to emerge.
The current market conditions seem to support Pal’s predictions. Despite Bitcoin’s recent rise to $44,000, Ethereum has shown a strong growth of 4.83% in the past 24 hours, now trading at $2,336. This increase in Ethereum’s value, coupled with a slight 0.27% decrease in Bitcoin’s value, further strengthens the speculation about Ethereum’s potential to lead the next bull run.
Pal’s analysis goes beyond simple price comparisons. He delves into the intricacies of liquidity and business cycles, suggesting that these factors have a significant impact on the trajectory of cryptocurrencies. In a typical business cycle, which consists of economic expansions and contractions, investor risk appetite fluctuates, influencing the performance of different asset classes, including Bitcoin and Ethereum.
Not everyone shares Pal’s optimism for Ethereum, however. Veteran trader Peter Brandt, for example, has predicted a potential drop in Ethereum’s value to $650. Nevertheless, Pal’s counterargument, supported by historical data and current market trends, paints a more positive picture for Ethereum enthusiasts.
It’s worth noting that classical chart patterns in price charts are not always reliable and often fail to adhere to the textbook predictions. However, if the rising wedge in Ethereum holds true to the script, the target price would be $1,000, and potentially even $650. Brandt has already taken a short position on Ethereum and has set a protective stop at breakeven.
In conclusion, Raoul Pal’s prediction about Ethereum outperforming Bitcoin in 2024 challenges the current market dynamics. While not everyone shares his optimism, the current market conditions seem to align with his analysis, suggesting that Ethereum may indeed lead the next bull run. Only time will tell if Pal’s projection proves to be accurate.