Raoul Pal has doubled down on his bullish Bitcoin outlook as the digital asset continues its positive path to recovery from a recent price crash. The digital asset’s price collapsed last week under the pressure of a panic driven selloff in which its price tanked by more than half. Bitcoin fell from around $8,000 to a new yearly low of about $3,700 as the crypto reacted to the coronavirus epidemic and the looming global economic crisis.
Bitcoin recovers 80% in a week
Now, Bitcoin’s recovery seems to have occurred at an opportune time, defying odds as the effects of the coronavirus pandemic intensify. Raoul Pal, founder and CEO of Global Macro Investor, views this as the perfect timing to convert the ongoing disaster into a foundation for future gains stating on Twitter
I can not express how bullish I am on bitcoin
And, rightly so as the digital asset value has surged by about 80% in just one week. Bitcoin has reversed a significant proportion of the losses it suffered last week with its price rising from $3,700 to a new weekly high of $6,650 on March 20. The virtual asset grew dramatically on the day surging by more than 20% over the last 24 hours.
I can not express how bullish I am on bitcoin. We are at risk of losing the entire system right now. I know they will find a way to save it but all trust is lost.
Gold guys/girls – you’ll be fine too. It’s just that $BTC has bigger upside, by far but is riskier than gold
— Raoul Pal (@RaoulGMI) March 19, 2020
Bitcoin’s positive price action comes in the backdrop of a steady performance by the leading cryptocurrency over the past week. The virtual asset has shown great resilience since March 14 when its price stabilised above the $5,000 level before surging rapidly after breaking the $5,500 barrier on March 19.
Bitcoin detaching from financial markets
The virtual currency has shown signs of recovery this week as its performance continues to move away from that of the mainstream financial markets. Bitcoin had recorded some uncharacteristic performance in the past week as its price action mirrored that of risk-on assets in traditional markets. However, the digital asset appears to have made a U-turn with its price surging rapidly while that of conventional assets like equities, stocks, and gold continues to fall.
In this respect Pal stated that there is the potential risk that entire systems could be lost in the midst of the ongoing global economic turmoil. He intimated that governments and policy makers could conjure a way to prevent that from happening but suggested that could be a little too late as already all trust is lost in the system.
These sentiments echo Tim Draper’s recent comments where he suggested that its Bitcoin, rather than governments, that will save the world from economic collapse.
Pal’s sentiment will have a positive effect on the crypto market as investors continue to evaluate alternative investment avenues and assets capable of withstanding the rigors of external market forces.