There have been a lot of optimistic predictions about the price of Bitcoin and now a bold one is popping up in the crypto space, and it’s coming from Raoul Pal.
During an interview with Dr. Julian Hosp, Pal said that from his perspective, Bitcoin’s current bull cycle looks a lot like the 2013 cycle, as reported by the online publication the Daily Hodl.
His predictions are based on previous BTC cycles and he said that the “overbought” region where Bitcoin could hit a wall and correct is roughly at the $400,000 level.
Bitcoin could reach $1 million
On the other hand, he said that if this level gets broken like it did the last two cycles, a $1,000,000 BTC would then be a viable number.
“For it to get to kind of one standard deviation overbought it’s about $400,000. But if it gets to two standard deviations where it got to the last two times, it’s $1,000,000.”
He also made sure to highlight the fact that PlanB’s stock-to-flow model (S2F) has engrained the $288,000 level in investors’ minds.
In his opinion, this took the expectations of Bitcoin’s performance to the low side.
“I think there is a risk that we all think – and I see PlanB asking this question a lot on Twitter – ‘Where do you think it tops out?’ The skew is to the low side. The skew is around $150,00-$200,000. This $288,000 number, people are really not sure on, and anything higher they’re like, ‘No chance, the lowest probability of all,’ and I’m like, ‘I kind of like those odds.’ he said.
He continued and explained: “We could have that shocking moment where a lot of people sell out at $250,000 for these reasons. We’ve all seen that and we all think that could be the case, or we could overshoot. We could see an elongated cycle… because the institutions continue [to allocate to BTC].”
He also made sure to point out that he’ll get his profits out at $250k.