According to Raoul Pal, global financial trends, Bitcoin halvings, and U.S. presidential elections all contribute to the fundamental cyclical nature of crypto.
Traders should sell their cryptocurrency when the price reaches a certain point, according to Raoul Pal’s newest video podcast, a former executive at Goldman Sachs. He recommends using a time-based strategy rather than trying to predict when the market will peak.
When asked, “When do I sell my crypto?” Pal says it depends on your investing objectives and time horizon, and that cryptocurrency is cyclical by nature. Crypto is very cyclical according to Pal’s “everything code” philosophy. This theory connects these ebbs and flows to monetary trends throughout the world, Bitcoin splits, and presidential elections in the United States.
Pal uses anecdotes to describe his experience purchasing Bitcoin in 2013 for $200 and riding out its wild swings in value. The market timing attempts of everyone he or she has observed, including themselves, have always been unsuccessful, he concedes. He thinks on the difficulty of market timing and says, “I would have earned five times as much money by not doing anything.”
Instead of attempting to pin down the exact market peaks, Pal suggests basing your strategy on time. “Use time, not price,” he says, advising investors to cash out at year’s end, when cryptocurrency tends to do well.
Having funds on hand to purchase during market downturns is something that Pal stresses. “No matter what you’re purchasing, every time you purchase those lows, you’re going to 10, 20, 50x,” he says, emphasizing the importance of long-term compounding.
His only action this time was to make a purchase when he believed we were at the bottom, he says. Significant market recoveries were opportunities for him, he says, because of this method.
Finally, the Macro Guru discusses the psychological side of investment, acknowledging that it is hard to reinvest after a recession because people are afraid of losing more money. By saying, “The hard part is really putting the same amount back in again,” he admits that investors encounter psychological obstacles. His main point is that you should ignore temporary market fluctuations and remain invested in the long-term secular trend.
According to Pal’s earlier predictions, the cryptocurrency markets would reach a “Banana zone” by the end of the decade, with a total market valuation of $10 trillion. Even Bitcoin’s value may reach $1 million, according to his forecasts.
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