Renowned st and crypto expert Raoul Pal explains how Bitcoin and Ethereum (ETH) will rise against other asset classes this year.
Raoul Pal: Bitcoin and Ethereum may rise against other asset classes this year
In a new storm of tweets, former Goldman Sachs executive Raoul Pal reiterates the theory that Bitcoin is a “super big black / hole” and argues that cryptocurrency markets will continue to attract capital from all other major assets.
Comparing the performance of Bitcoin and Ethereum with all other major tradable assets since the beginning of 2021, Raoul Pal highlights a huge asymmetric advantage in favor of the two biggest cryptocurrencies by market capitalization. Even when calculating the amount of risk required to invest in crypto, Raoul Pal says that the digital asset space still overshadows everything. Raoul Pal adds the following to his comments on the subject:
Also, the volume adjustment earns crypto based on a risk-adjusted return. Like it or not, this is the top trade in the last 12 months and one of the biggest trades ever. BTC rose + 1.386% from the lowest level in March 2020. ETH, March
+ 2% from the lowest level in 2020. 985 increased.
Raoul Pal: BTC and Ethereum will continue to be superior bets throughout the year
Raoul Pal believes that Bitcoin and Ethereum will continue to be superior bets throughout the year. Raoul Pal adds the following to his comments on the subject:
My theory is that no investment will beat cryptocurrency this year and it will attract more and more capital. The point here is that it performs better than any asset class in the world. Not because I like it because it’s new and shiny, but because it makes everything else look pointless. I don’t care about growth versus value. Look, if I had the right timing, there was a 10% return. I can buy and hold bitcoins and earn 100%, and it’s almost mid-March. This is what I’m trying to hit the table with. At this stage of the crypto cycle, nothing else matters.