Former Goldman Sachs Hedge-fund Boss: ‘Volatility Is Your Friend’
2 min readFormer Goldman Sachs hedge-fund manager Raoul Pal believes bitcoins volatility should be considered a good thing for the market.
CEO of Real Vision TV and ex Goldman Sachs hedge fund manager Raoul Pal has spoken out about BTC’s volatility. With the entrepreneur calling it a feature that drives the risk-reward.
Speaking at a virtual event this week, Pal spoke about the price movements of the world’s biggest cryptocurrency. BTC is not prone to stable movements like other assets such as gold and silver. Instead BTC can see moves of up to five percent per day as normal.
Volatility not a bad thing
Pal believes investors should change their mindset and look at the volatility as a positive feature for the cryptocurrency. When speaking of the risk-reward feature, Pal stated “without that volatility, you can’t have compounded annual returns of 230%. Volatility is your friend in this occasion”.
BTC has seen a rise of over 113% in 2021 alone. Making it one of the strongest gainers in the finance markets this year. The current strength of BTC indicates there is still more upside expected this year. Pal reiterated that while volatile, BTC still enjoys predominant upside even with huge swings in the market.
BTC adoption increasing
The current growth of BTC has seen financial institutions take notice of the gains that are possible in the market. Pal explains that “Everybody is getting involved, is involved, or is in the due diligence process of doing it,”.
Pal concluded by talking about BTC as the best performing asset class in all recorded history. As well as being the best performing asset over any period of time he mentioned.
He concluded by talking about regulation within the cryptocurrency market. Pal believes that regulation needs to be minimal, and that it won’t hinder but rather attract more capital into the industry.
In a recent tweet, the ex hedge fund manager called the recent three month breakout “a big deal”. Pal expects that BTC could see another strong move to a new all-time high.
Kind of feels like a big deal to see BTC break a 3 month range and a wedge. It should create a powerful move to the upside. (Axis scrunched on chart to hint at the upside for dramatic effect.
)#BTC pic.twitter.com/q65CjBn7i6
— Raoul Pal (@RaoulGMI) April 10, 2021
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