Raoul Pal -- an economist, former hedge fund manager, and the world's most vocal Bitcoin bull -- has predicted the cryptocurrency will surge over 500 percent to trade between $250,000 and $400,000 by March 2022. He also said Ether will surge to a record high of $20,000 by that time.
Pal, who used to work at Goldman Sachs as a hedge fund executive, now runs RealVision, a financial TV channel that aims to simplify the complex world of finance.
In a podcast with Bankless, breaking down his portfolio, he said he has invested 55 percent of his savings in Ether and only 25 percent in Bitcoin. The remaining 20 percent investment is split across DeFi tokens like Polkadot and a selection of social tokens.
DeFi or decentralised finance tokens aim to recreate traditional financial systems and most of them run on the Ethereum blockchain.
Justifying his upbeat price predictions, he said Bitcoin rising 500 percent from its all-time high of $60,000 would be a "very normal rally for the year-end." Bitcoin had hit an all-time high of $60,000 in mid-April, but by the end of May it had given up all its gain to plunge to as low as $30,000.
Currently, Bitcoin is very close to breaching the $50,000 psychological level, rising over 5 percent in the last 24 hours. However, Ether and some altcoins have been outperforming Bitcoin, with Ether rising over 10 percent in the last 24 hours. Analysts expect Ether to breach the $4,000 level very soon.
Pal is also bullish on Ether. Explaining his enthusiasm for Bitcoin's biggest rival, he said, "There's tons that have gone into just holding, tons that are locked up in DeFi, tons that are locked up in NFTs, and you are left with, as of today, 11 percent of the entire supply of Ether available and it's going down every day. And the demand is going exponential. The only outcome is an exponential rise in price, there is no other outcome."
Earlier in October 2020, Pal had said the price of Bitcoin could hit $1 million in the next five years. He had said a wave of increase in institutional funds in Bitcoin will push it higher. By that time, Bitcoin was up 40 percent year-to-date.
While Pal made his latest comments on the bullish future of bitcoin, another billionaire investor is singing bearish tones.
John Paulson, an American billionaire, dismissed cryptocurrencies as an asset class and dubbed them as a "limited supply of nothing." In an interview with Bloomberg, he said cryptocurrency prices will eventually crash to zero.
Paulson, known for betting against the US housing market in 2008, warned cryptos are nothing but a bubble and that its investors should be prepared to lose their holdings.