Raoul Pal, a well-known figure in the financial world, has made a shocking prediction about the future of cryptocurrencies.
His analysis suggests that the total market capitalization could rise to $100 trillion, driven by global liquidity trends and technology adoption.
The mechanics behind predictions
Pal’s insights stem from his observations of global liquidity cycles, which have been shaping macroeconomic trends since 2008. Especially in the tech and cryptocurrency space.
Additionally, Pal noted that devaluation of fiat currencies is driving up asset prices due to the need to repay growing global debt.
This, coupled with the rapid adoption of cryptocurrencies (reminiscent of the exponential growth of the web), sets the stage for significant growth in market capitalization.
In the long run, it looks like this. I believe this is the adoption curve that has taken cryptocurrency market capitalization from $2.5 trillion to $100 trillion over time. pic.twitter.com/gPsGkJdB8F
— Raoul Parr (@RaoulGMI) May 13, 2024
Pal’s view was supported by Chris Burniske, former head of cryptocurrency at ARK Invest, who also agreed with the bullish outlook. Burniske predicts that the digital currency market will soon reach $10 trillion, and may soar to $100 trillion.
The broader cryptocurrency market outlook
This optimistic forecast is not isolated. Ripple CEO Brad Garlinghouse also expects the cryptocurrency market to grow significantly, predicting that the cryptocurrency market will reach $5 trillion by the end of 2024.
Garlinghouse’s comments in interviews with CNBC and Fox highlighted the impact of macroeconomic factors such as spot ETFs in attracting institutional money into the market. He said reduced supply and increased demand may even mean his forecast may be conservative.
Financial services firm Bernstein has given Robinhood an “outperform” rating and expects its cryptocurrency revenue to nearly triple by 2025, further supporting bullish sentiment.
In doing so. Bernstein’s analysis predicts that the total market value of cryptocurrencies may reach $7.5 trillion by 2025, driven by massive market expansion.
Despite these optimistic forecasts, the cryptocurrency market currently stands at $2.36 trillion, down slightly by 1.5% in the past 24 hours.
This decline was reflected in the performance of Bitcoin and Ethereum, which fell by 1.8% and 2.1% respectively.
Notably, Dan Tapiero, co-founder of Gold Bullion International and 10T Holdings, recently expressed an extremely positive outlook on Bitcoin’s future based on current chart patterns.
In a recent tweet, Tapiero highlighted two charts showing very promising trends for Bitcoin. He predicted that the leading cryptocurrency will soon surpass the $65,000 mark, before climbing to $90,000 and possibly further gains.
Starting to look scary bullish #bitcoin
Breakout from 65k straight to 90k…and more…
A very clear horizontal overlapping flag consolidation is about to complete.
Mkts always surprise people.
The specific catalyst is unknown, but that doesn’t matter.
DFTU as @RaoultGMI Preach. 🚀🚀 pic.twitter.com/KcFAwH1H80
— Dan Tapiero (@DTAPCAP) May 14, 2024
Featured images from Unsplash, charts from TradingView
