The former head of the European division of securities and derivatives of Goldman Sachs predicts the growth of ETH to $20,000, while bitcoin could touch $400,000.
In the Bankless podcast, crypto enthusiast and former Goldman Sachs executive Raoul Pal predicted that the price of ETH could skyrocket more than 480% to $20,000 in the coming months.
“My price prediction has been ETH north of $20,000, and that’s pretty simple. All I did is just map over the ETH chart to the Bitcoin 2017 chart. They work perfectly, and it gives you $20,000. There’s no great science to that, but it feels about right.”
According to him, the growth is fueled by the results of deflationary mechanism launched on the Ethereum network after the London hard fork.
“Basically, there’s 13% of all the free float of Ethereum available. Everything else is being staked, locked and hoarded. They’ve just made the supply more difficult. The supply is lower.”
“I’ve also mapped the Bitcoin price versus Bitcoin 2013. They look pretty similar. There’s a bunch of other ways I’d do it with Bitcoin with log charts, regression analysis, stuff like that. Generally speaking, I think it’s somewhere between $250,000 to $400,000, with an outside chance of a million [dollars] if we get an extended cycle.”
Pal cites the traditional bullish cycle at the end of the year and the possible reopening of the Fed’s printing press as the two main catalysts for bitcoin’s growth.
“Don’t forget, they usually go up 5 to 10x in the last three months of the year. We haven’t even got to the all-time high, but let’s say Bitcoin goes up 5x from the $60,000 high. That’s $350,000. That would be a very normal rally for year-end, considering we’re about to have an ETF (exchange-traded fund). And if I’m right, we might see the central bank pivoting to more printing. They may not print more money this year, but they’ll start talking about it. Those two things alone are enough to drive Bitcoin to $350,000.”
Ethereum rose in price by more than 10% and exceeded $3500 within the last two days.