Raoul Pal, a former hedge fund manager in Goldman Sachs and CEO of Real Vision TV, alludes to Bitcoin volatility as an encouraging factor for the crypto market.
Raoul Pal acknowledged that Bitcoin cannot be continuously and steadily held at the same height, which is typical for traditional reserve assets like gold or silver. Quite the opposite, Bitcoin can experience a change of more than 5% in a single day. The cryptocurrency supporter deems this to be normal and has dubbed Bitcoin volatility a function that defines a risk-reward opportunity. Pal suggested that investors and traders consider the high volatility of virtual assets “with the eyes of an optimist” and view it as a positive tick for the crypto market.
“Without this price volatility, it is not possible to achieve an aggregate annual return of investment of 230%. Volatility is, in fact, a friend of crypto traders,” noted Raoul Pal.
In the first three months of 2021, the Bitcoin rate has increased more than twice over, making it one of the most lucrative assets, Pal asserted. Taking into account that the first cryptocurrency recently rebounded over the $60,000 mark, currently, there is even more potential for growth, despite the volatility and large instabilities in the market. Pal dubbed this breakout a “big event” that would drive Bitcoin to a fresh “round” high. Previously, the entrepreneur said that by the end of this year, the BTC price could potentially grow to $250,000. According to him, the interest rates of global financial institutions will impact the growth of Bitcoin even more.
“Some are planning to invest in Bitcoin, others already got it, and still others are assessing its capabilities. Bitcoin is the most effective asset class in the records of the financial markets,” added Pal.
Raoul Pal also thinks that regulators should not stiffen control over the crypto market. In this scenario, regulation will not impede the development of digital assets, but, on the opposite, will allow drawing more capital to the sector. Nevertheless, the chair of the ECB Christine Lagarde is confident that the disproportionate volatility of Bitcoin is an additional reason why it is needed to tighten control over cryptocurrencies.
Former chairman of the US Securities and Exchange Commission Jay Clayton already stated that Bitcoin will not be able to evade supervision in the future, even if it is not deemed a security.
