The cryptocurrency is down 20% from April’s all-time high of $64,829.
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It was a manic Monday in the crypto world as markets lost over half a trillion dollars across the asset space. Bitcoin was already on the downswing last week, plunging 30% from April’s all-time high after Tesla CEO Elon Musk said his company wouldn’t accept payments of the cryptocurrency due to environmental concerns.
However, former Goldman Sachs hedge fund manager, Raoul Pal, says he’s sticking to his $250,000 price target because ‘rocket fuel’ is coming, MarketWatch reports.
“I think BTC goes well above $250,000 in the next 12 months and ETH [Ethereum] well above $20,000.”
Ethereum ETHUSD, -1.38%, the second most popular cryptocurrency behind Bitcoin, is also down almost 20% from last week’s all-time high of $4,382.
Pal says a long-awaited U.S. exchange-traded fund should be announced by September. It should boost digital assets and lift prices across the whole crypto market “due to new sources of demand from RIA’s [registered investment advisers] and asset managers,” he said.
In the meantime, Pal says corrections and volatility are part of the cryptocurrency landscape, and “35% pullbacks are normal.”
Bitcoin’s 200% annualized returns are still the highest of any asset ever recorded. While that pace may slow over time, Pal says the crypto market’s adoption rate is still rising 113% a year, the fastest of “any technology in history,” including the internet boom between 1990 and 2000.