It’s been reported that a huge bubble cycle could be in play for crypto, according to the latest reports from an ex-Goldman Sachs executive. Check out the latest reports about this below.
Bubble cycle ahead?
Raoul Pal, a former executive at Goldman Sachs, has recently expressed his belief that the cryptocurrency markets could be heading towards a massive bubble cycle.
In an interview with Scott Melker, a prominent figure in the cryptocurrency space, Pal stated that while he thinks that the current market cycle is not unusual, there is a 20% chance that it could turn into a “gigantic bubble cycle.”
As the macro guru and CEO of Real Vision, Pal’s insights into the cryptocurrency market are highly regarded by many investors.
“Here’s my probability set: 60% chance it’s a regular cycle, somewhat like the last cycle but maybe a bit more like the previous cycle – like 2017 that got a little bit crazy. There’s a 20% chance that maybe it all gets front-loaded because we’ve got all the retail demand, and it actually is a shorter cycle than expected.
If you think the previous cycle was actually a bit stunted versus where people’s expectations were, maybe this is stunted in terms of time. The other outcome I’ve got, the other 20% chance, is that this is a gigantic bubble cycle, somewhere between the 2012-2013 version and the 2015 because everyone can now participate and total madness will ensue.
And I don’t know which one of the three it will be, but they’ve all got a decent chance.”
Pal believes that investors are of the opinion that the current cycle will be shorter.
Although they may be correct regarding the increase in prices, they are mistaken about the length of the cycle.
Pal thinks that investors are expecting a shorter cycle due to their previous experience of not having a final leg in the last cycle.
Now, they anticipate a shorter cycle, but Pal believes that there is a possibility of the cycle being longer than expected.
According to him, the crowd can be wrong but still be right, meaning that the prices may rise more than they think.
