Bitcoin could fall to $75,000 in the short term, according to crypto pundit Raoul Pal. Still, he believes this potential drop does not matter.
Pal expressed this view in what appears to be a teaser for a coming Real Vision episode featuring Julien Bittel, Head of Macro Research at Global Macro Investor.
“People see this chart; they worry about the fact that it shows that Bitcoin comes down to $75,000, but what we proved is, last time around this happened, Bitcoin went down quickly and then recovered. And so, it didn’t matter,” Pal stressed in the clip.
While the “last time around” Pal is referring to is unclear, the analyst certainly believes that Bitcoin is replicating its 2017 run, during which it surged nearly 20x from about $1,000 to above the $19,000 price point.
Raoul argues that the same fundamental catalysts that drove that run are still at play here. These catalysts are dollar weakness and China stimulus.
The sentiments come as President Donald Trump has often lamented the impact of what he believes to be an overly strong dollar on U.S. manufacturing, a view likely shared by his treasury secretary pick, Scott Bessent.
And indeed, in China, the government is pursuing several stimulus packages to bolster economic growth. In the most recent example of this, the country is reportedly set to inject at least $55 billion into the banking system.
Pal contends that these factors will free up more liquidity, some of which will flow into the crypto market, which will send Bitcoin flying and eventually altcoins as well.
Nevertheless, at the time of writing, Bitcoin is trading just over the $88,400 price point, marginally recovering from its drop to three-month lows at $86,000 over the past 24 hours amid heightened inflation and trade war fears.
