A former Goldman Sachs executive, Raoul Pal, believes the crypto market is poised for a rally heading into the end of 2024. According to Pal, Bitcoin and other digital assets may experience larger gains during the last week and half of December, due to historical trends known as the “Santa Claus rally.” This phenomenon typically occurs in traditional equities during the last five trading days of the year in December and the first two trading days of the new year.
Pal also expects a more significant rally in the current market cycle, which he predicts could occur next year, possibly around the Fed’s March meeting when interest rates may be cut. However, Pal warns that there may be a temporary correction around year-end due to liquidity tightening. He believes that the growing money supply is a key driver of Bitcoin’s price and that when it declines, so does the flagship crypto’s price.
Pal’s predictions are based on historical data, which show that a similar pattern occurred during the Trump administration. The dollar rallied in September and decreased by the end of the year, while interest rates rose. Pal expects a similar trend to play out this year, with global liquidity tightening leading to a correction by the end of the year.
At present, Bitcoin is trading at $94,367, down 11% over the past seven days. While Pal’s predictions carry weight, investors should conduct their own research and consider their own risk tolerance before making any investment decisions in cryptocurrencies or digital assets.
Source: https://dailyhodl.com/2024/12/24/macro-guru-raoul-pal-predicts-crypto-market-will-rally-pretty-strongly-into-year-end-heres-his-outlook