Real Vision CEO Raoul Pal: The Structure Of Crypto Market Has Changed

Real Vision CEO Raoul Pal says Bitcoin's market structure has changed. He said in a new interview with Lark Davis, this bull run will be far different than the last due to an influx of institutional investors moving into the space. Pal said, “It is, I think, gigantically different. Firstly, look at the acceleration of this post-halving versus the previous one. It’s faster, which none of us expected. We were all expecting the slope to be less. So far, not true. Now, it’s early days. So that’s interesting to me. Also, the structure of the market before was retail investors. Now here we’ve got institutions. Some of them will buy and hold, but as you bring in hedge funds, you’ll start bringing new supply into the market because they’ll trade it more and they’ll trade it in big size. So they’ll be selling some, buying it back, selling some, getting short. That’s a different structure than we’re used to. What that actually does is lower the volatility of Bitcoin over time. So the texture and feel of Bitcoin will be different. Over time, the next cycle, the returns will be significantly lower in terms of percentage returns. This one, I have a hunch that this will be bigger than anybody imagines… The structure of the market is changing. But I have a feeling that this is going to be a little more shocking than people imagine… If I just take the log chart and put regression lines on it, if it gets to two standard deviations overboard which is roughly where it got to the last two peaks, that’s a million bucks.”

By Liang Che

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