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Former hedge fund manager and CEO of Real Vision, Raoul Pal, believes that the real impact of the COVID-19 pandemic is about to reach the financial markets. By outlining several upcoming cornerstones among traditional financial assets, he highlighted Bitcoin as the âlife raftâ in this situation.
Raoul Pal: Everything Has Changed
In a recent Twitter thread, the Wall Street veteran outlined the rapidly growing COVID-19 cases worldwide. The total number of infected has neared 45 million, while the death toll is almost 1,2 million.
Pal predicted that these rising numbers in Europe, the US, and Canada are about to âexert economic pressures and extinguish the Hope phase of reflation dreams.â He believes that the upcoming consequences will harm the economy even more than the early 2020 developments. A real economic recovery âwill take more than a post-election stimulus in January.â
COVID-19 Cases In Europe. Source: Twitter
He continued by looking at several markets that have started to feel the adverse consequences and have fallen to long-term support levels. Those included the oil price, Spainâs benchmark stock market index â the IBEX 35, the EU Banks Index, the euro, the British pound, the US dollar, and more.
EU Banks Index. Source: Twitter
As such, he broached a few possible solutions â âyou can buy bonds and dollars, or you can take the life raft â Bitcoin.â
âOr, to dampen the volatility of a risk-off event (we can and will see sharp BTC corrections), you can have all three for a near-perfect portfolio for this phase.â â Pal concluded.
Bitcoin Will Eat The World And Price Predictions From Pal
Pal further highlighted his positive views on Bitcoin by saying the cryptocurrency âwill eat the world.â He attributed it to its performance, which is so dominant and so âall-encompassingâ that it will âsuck in every single asset narrative dry and spit it out.â
âNever before in my career have I seen a trade so dominant that holding any other assets makes almost no sense.â
As far as price predictions go, Pal said that $14,000 is the only resistance left in Bitcoinâs way to the all-time high at $20,000. He expects that BTC should overcome the December 2017 high by âearly next year at the latest.â
Additionally, CryptoPotato recently reported an even more optimistic and long-term forecast. By using a regression on the logarithmic chart since inception, Pal brought up a model that sees Bitcoin reaching $1 million by 2025.
Featured Image Courtesy of BusinessInsider
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