While Bitcoin’s growth has stalled of late, the massive strides made in August cannot be ignored. In fact, according to some like Raoul Pal, it’s all a part of the bigger picture.
During a recent interview, the CEO of Real Vision opined that the next phase of Bitcoin’s price action “is three months of face-ripping rallies.” This would follow “a bit of sideways movement,” which is where BTC is at right now. Pal based his analysis on his assessment of Bitcoin’s movement in 2013 since he believes the ongoing bull run is mirroring that.
Best case and worst case
The exec also made some high-level predictions for Bitcoin. He said,
“I think the worst case is probably $200,000 and the best case is $400K+, depends whether the cycle gets extended, which I think there’s a probability of.”
It is no surprise, however, that traditional financial institutions might be irked by Bitcoin’s rapid growth as it could eat into current stock market investments. Pal thinks the opposite to be the case, with the exec claiming,
“They’re all building out crypto teams. They’re all trying to offer it to their clients. And it is coming and they don’t want to stop it because they want to make money from it.”
Despite the aforementioned projections, however, it is Ethereum that the CEO is placing his bets on. “My view is that ETH is going to dramatically outperform Bitcoin,” he said, with the exec listing out reasons for his belief too.
Firstly, Ethereum’s native token Ether has vastly outperformed Bitcoin in terms of price action for a while now. While Ethereum gained over 710% in valuation over the past year, Bitcoin’s growth rate was less than half at around 300%.
More development, more applications
Pal also lauded the growth of Ethereum’s network, with the exec asserting,
“More people are coming to the network faster than what happened to Bitcoin at the same stage with the same number of users. There’s more development going on it, more applications going on it.”
Since EIP-1559’s implementation on the network, Ether is on course to become a deflationary asset with some amount burned out of existence with every transaction. At the time of writing, 157,970 ETH had been burned since the network upgrade, amounting to $559,240,274.
Moreover, over the past year, the ETH supply held on exchanges has dropped from 26 million to 19 million. According to Pal,
“If you’ve got supply that’s capped and demand going up exponentially, the only thing that’s going to happen is price goes up exponentially. So I’m incredibly bullish with ETH.”
Flipping the flippening
Albeit, the question that remains on everybody’s mind is – When will Ether finally take over Bitcoin’s market cap? More popularly known as the “flippening,” ETH overtaking BTC’s throne has long been a point of anticipation for many.
While the actual flippening is still well away, Pal believes Ether would most definitely reach or surpass BTC’s market cap during this cycle. It would be a momentary feat since a larger bearish pull could cause this effect to reverse quickly.
He was quick to point out, however, that the next bull run will be ETH’s moment to shine. Why does the crypto-maximalist believe so?
“… When you look at all the things that Ethereum does, you know, it can bring in the derivatives market, what it does with NFTs, what it does with DeFi. I mean, there’s really no shortage of opportunity for Ethereum. And there’s just so much there.”