The rapid growth of the cryptocurrency market has boosted enthusiasm among investors. However, some are more sanguine than others. One of those who are most resolute is investor Raoul Pal who believes that the crypto market capitalization could double in the next 2 to 3 months.
The crypto market crossed $1.8 trillion on Monday for the first time which has drawn a lot of attention. While this is considered to be a big deal, Pal says the charts suggest that there is far more growth to come that can increase the market cap by 100% in the short term.
“The market cap of the entire digital asset space feels like the break of $1.8trn is kind of a big deal. The chart pattern suggests acceleration lies ahead on that break. My guess is the whole space doubles in next 2 to 3 months. Let see!”, he wrote in a tweet.
Pal is one of the biggest individual investors in Bitcoin and also one of the most bullish on the asset. He recently traded his gold investment for Bitcoin. The CEO of Real Vision has dedicated 50% of his entire portfolio to Bitcoin not typical of other investors like Mark Cuban who have only allotted 2%.
The rapid growth of the cryptocurrency ecosystem is attributed mainly to the coming of institutional investors such as Tesla which invested $1.5 billion in Bitcoin earlier this year. More recently, the electric car maker announced it will accept payment for its vehicles in Bitcoin going forward.
Such developments which bring more money into the crypto space and increase the utility of Bitcoin are likely to fast track the growth of the space.
The question however is, will the growth be as fast as Pal has predicted? The altcoins have also picked up and some analysts believe it is the beginning of another altseason. Whether this is valid will be seen as time passes but the general market sentiment at the moment remains widely bullish.