The current crypto market shows similarities to 2017 when Bitcoin experienced significant growth. Real Vision CEO Raoul Pal analyzes the causes and implications of this situation.
Comparison with 2017
Raoul Pal, CEO of Real Vision, claims that the current state of the cryptocurrency market resembles 2017. He notes that Bitcoin started 2017 at approximately $1,044 and ended the year at $14,156, marking a rise of around 1,255%. 'It’s spookily similar to 2017,' Pal said.
Macroeconomic Factors
Pal concludes that the current crypto cycle may last longer, given that the US Dollar Index has decreased by 8.99% since the start of the year. 'When the dollar weakens, Bitcoin becomes more attractive as both an investment and an alternative currency,' he adds. He also suggests that macroeconomic data might be the primary catalyst behind the cycle delay.
Crypto Market Perspectives in the Middle East
During a recent trip to the Middle East, Pal met with Sovereign Wealth Funds, most of which expressed a bullish outlook on the crypto industry. 'The mandate across the entire region, from Saudi Arabia to Dubai, is AI and blockchain,' he states, emphasizing the importance of integrating blockchain into government structures.
Thus, despite various macroeconomic conditions, current trends in the crypto market may indicate a new growth cycle similar to what was seen in 2017.
