Real Vision CEO Raoul Pal says that crypto markets are showing signs that a new massive leg up is on the horizon.
In a new interview with Ash Bennington on Real Vision Finance, Pal says that looking at Ethereum in its Bitcoin pair (ETH/BTC) suggests to him that crypto markets could be entering a “crazy” phase.
“The chart I think is the most important chart right now is the chart of ETH versus BTC. It’s currently at 0.074 BTC ($4,249.24). At 0.08 ($4,593.77) it breaks out of this lovely pennant pattern and a larger basing pattern that goes for years. It looks like its performance will double versus Bitcoin.
Ethereum as of today is up 480% this year and Bitcoin is up 100%. That tells you something crazy is about to happen in crypto markets. Does that mean other tokens outperform Ethereum? Probably. It feels like we’re getting close to the final crazy phase that often happens.”
The former Goldman Sachs executive maintains that the current bull cycle will extend later than most traders expect. According to Pal, Ethereum should lead the rest of the crypto bull market, which he notes is currently sitting at a sweet spot.
“How long [the bull market cycle] goes on for, I’ve got a different view on that. I’ve talked about it before: there’s a lot of institutional allocation that’s going to come in January, February, March, new hedge fund PNLs (profits and losses), all coming in. I think this cycle extends much further than people imagined and goes much higher in price.
But we’re right in the sweet spot for what traditionally would be a very strong market and ETH should be the leader.”
Ethereum is exchanging hands at $4,411 as of writing, a 11% increase from its seven-day low of $3,981.