- Former Goldman Sachs Exec Raoul Pal thinks Ethereum will outperform Bitcoin’s market cap in the next bull run.
- ETH mirroring BTC’s 2017 bull run, and should this trend persist, ETH may hit a new $20,000 ATH, the analyst explained.
Raoul Pal, a former Goldman Sachs executive and currently the founder and CEO of Real Vision thinks Ethereum will soon surpass Bitcoin. Speaking to YouTuber BitBoy Crypto and his 1.22 million subscribers, Pal said Ethereum may approach Bitcoin’s market cap this year. He then agreed to the statement saying,
Next bull run, Ethereum permanently passes Bitcoin.
Pal’s reason for this, is that Ethereum (ETH) has many use cases involving transactions, NFTs, and developer activity. The network’s user base is also increasing by bigger numbers compared to Bitcoin at the same stage. Moreover, the EIP-1559 upgrade is cutting up ETH’s supply, making it limited and subsequently more valuable. Also, with ETH 2.0 on the way, Ethereum is likely to rise exponentially.
However, most people with Bitcoin (BTC) prefer to hold it for extended periods due to its appreciating value. BTC could become the base of global currency, however other cryptocurrencies could also achieve the same.
Bitcoin’s trend rivalling Ethereum
When asked about the general observations of Bitcoin, Pal noted vast similarities between this bull market and that of 2013. According to the stock-to-flow (S2F) model and network effects, Bitcoin should keep going up, he says. The crypto asset may have a number of corrections at first, but he maintains it will go up significantly.
[…] the next phase is three months of face-ripping rallies.
As for the end-of-year predictions, Pal thinks the worst-case scenario would be Bitcoin achieving $200,000. On a much brighter side, Bitcoin could achieve $400,000+, should the cycle get extended, which he thinks is highly probable.
Contesting this view, BitBoy Crypto said Bitcoin has about 4-6 weeks left to rise quite fast. Thereafter, he thinks some controls may be placed to prevent extremely high price surges. Referring to the “people that control the markets in the world,” BitBoy Crypto said:
They don’t want Bitcoin to go to those high numbers because if Bitcoin goes to $400,000, that would put the stock market is very, very serious trouble. Investors would be pulled to crypto more than the stock market.
Cryptocurrencies and traditional financial institutions
Pal noted that traditional financial institutions are all “building crypto teams” to reap off cryptocurrencies’ financial benefits. However, “this is the opportunity for the little guy to front-run Wall Street,” he said.
That said, Pal is confident in the likelihood of Ethereum outperforming Bitcoin, based on the ETH-BTC cross. Already, ETH is up 350 percent this year while Bitcoin is less than 100 percent, he added. On top of that, Ethereum is currently mirroring Bitcoin’s 2017 bull run. Should the trend carry on, a new all-time high of $20,000 may be witnessed for Ethereum, he suggested.
As of this writing, ETH was trading at $3,518, up 4.7 percent on the day, according to our data. BTC was down 1.4 percent in the day, trading at $47,291.
