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Goldman Sachs Manager: Bitcoin will hit $1 million soon

  • Former Goldman Sachs manager Raoul Pal predicts a Bitcoin price of $1 million within 3 years.
  • Pal describes Bitcoin and gold as the only refuges from the worsening economic crisis. 

Former Goldman Sachs manager Raoul Pal is pessimistic about the future of the global economy. Hit by the spread of the COVID-19 pandemic, Pal expects economic growth to take time to recover. In opposition, Pal predicts a rise in Bitcoin’s price to $1 million over the next three years, as the cryptocurrency positions itself as a safe haven from the crisis.

At the time of publication, BTC trades  at $7,669 with a positive performance (1.19%) in the last 24 hours. By holding above the important support level of $7,500, BTC can continue to rise. As analysts like Josh Rager said the next strong resistance stands at $7,800 in order to continue up to $8,000 and probably stay on a bullish trajectory. On the weekly and monthly charts, BTC shows gains of 5.63% and 13.08% respectively.

Bitcoin at $1,000,000 in 3 years

In the April report from Pal’s research service, Global Macro Investor (GMI), the current crisis is referred to as “the biggest event of our lives”. In this event, says Pal, the world economy is just going through its first stage: panic. About a speedy recovery, Pal is pessimistic:

I think that growth will not recover meaningfully from this massive economic hit. I think the narrative of hope is false hope. I would handicap a U-shaped recovery at 30%. I’d handicap a full debt deflation at 70%. Yeah. 70%.

According to Pal, the problem of the global economy is systemic and is related to “a vicious cycle” caused by the US dollar. Pal said the global financial system is unarmed to deal with the current crisis. The only option is a total change to the system. Pal added that no amount of money printing will change this:

You see, the biggest problem the world faces is the dollar. We are in a viscous doom loop where slowing growth causes the dollar to rise, which causes slower growth, which causes the dollar to rise, as all borrowers play musical chairs to get access to the dollar to service debts.

The former Goldman Sachs manager believes that only Bitcoin and gold will be a safe haven from the crisis. These assets will benefit from attempts by the financial institutions to print money to solve the crisis. The result will be a devaluation of fiat currencies, explains Pal, against gold and Bitcoin. Pal says:

Gold is the protection of our assets. Bitcoin is the call option on the future system. Both are going to save us and probably make us rich… Gold can go up 3x or 5x in the next three to five years.

Bitcoin, well, that’s a different story. I think (Bitcoin) can get to $1 million in the same time period.

In addition, Pal expects Bitcoin to reach a market capitalization of $10 trillion. The value of Bitcoin goes beyond being a store of value, according to Pal, the cryptocurrency will be the “future of our entire medium of exchange system and of money”. The former manager of Goldman Sachs advised caution in the face of volatility in the crypto market, but said that 25% of his wealth will be placed in BTC, 25% in gold, 25% in cash dollars and 25% in market investments.

Accordingly, other figures in the financial world such as Mike Novogratz and the director of development of crypto exchange Kraken, Dan Held, share Pal’s opinion and predict a positive outcome for BTC. Held also predicted a rise in BTC’s price to $1 million when the cryptocurrency enters a “super cycle” by the end of 2021 caused by the “infinite money policy” practiced by the world’s central banks. For his part, the former Goldman Sachs executive said that the “time of Bitcoin will come”.

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About Author

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Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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