Former Goldman Sachs executive Raoul Pal said that the cryptocurrency market could follow a strong upward trend until the end of 2024. In an interview with cryptocurrency analyst Scott Melker, Bitcoin $94,029.6 He stated that Cryptocurrencies and other cryptocurrencies could achieve remarkable gains in December based on historical data.
Year-End Rally Expectations
Pal pointed out that there is usually a “Christmas Rally” in the market around the end of the year. “During this period, stock markets increase in the last five business days of December and the first two business days of the new year. “The same movement can be observed in cryptocurrencies,” said Pal, emphasizing that he expects an increase on these dates. However, he believes that the real big movements will occur in the first quarter of the new year.
“Normally, during this period, one would expect everything to show a strong rise towards the end of the year. “But the real game is played in the first quarter,” said Pal, who attributes the real momentum of the market to the March meeting of the US Federal Reserve (Fed). A serious movement is expected in the markets as the Fed cuts interest rates.
Beware of Liquidity Contraction
Raoul Pal stated that the market has been facing a liquidity contraction recently. “I’m creating a chart showing that global liquidity is tightening, and the effects are being felt in markets with a 10-week delay. “This means that there may be a correction at the end of the year,” he said.
Speaking about the current situation of Bitcoin, Pal said that the increasing money supply supports Bitcoin prices, while the decreasing money supply causes the prices to fall. Recalling that historically similar scenarios were seen under the Trump administration in 2020, Pal made the following comment: “During that period, the dollar and interest rates increased from September to the end of the year. However, at the end of the year, these rates fell and there was a recovery in the markets. “The same situation may repeat in the current global liquidity contraction.”
Pal added that there may be significant gains in the cryptocurrency markets until the end of the year, but attention should be paid to possible fluctuations in this process. Warning that cryptocurrency investors should follow market movements carefully, Pal stated that the coming year will be critical in terms of market strategies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
