Despite a recent price dip in crypto, including Bitcoin, Raoul Pal, the founder of Real Vision, remains bullish, citing accelerating adoption and strong underlying fundamentals.
In a recent post on X, Pal said though prices are dropping after strong gains, cryptocurrencies and its underlying technology are being adopted twice as fast as the internet. At this pace, the founder projected a crypto user base of over 1 billion by the end of 2025.
HODL: Crypto Has Solid Fundamentals
Though this may be a mere projection, several factors might accelerate adoption. The sphere has been evolving, improving user interfaces and rolling out solutions that boost accessibility. For instance, some more wallets and exchanges enable the storage of crypto assets. Besides, regulations have been made to clarify the status of top cryptocurrencies.
In the United States, for instance, Bitcoin is recognized as a commodity, and the United States Securities and Exchange Commission (SEC) recently approved several spot Bitcoin exchange-traded funds (ETFs). Barely two months after launching, these vehicles control billions of Bitcoin as institutions dive into the emerging asset class.
Pal seems to argue that Bitcoin and crypto prices align well with existing fundamentals. This preview is a massive boost for crypto holders discouraged by recent events. Bitcoin and top coins, including Ethereum, are under immense selling pressure. After topping out at around $73,800, BTC is now roughly 10% from all-time highs.
At the same time, Ethereum failed to sustain prices above $4,000 and is now edging closer to $3,000. This dump is despite the release of upgrades, including Dencun, that make the network more performant and reliable.
Analysts Are Bullish: Expect Bitcoin To Rip Higher
Still, most analysts are bullish. Most dismiss the recent price drop as a temporary correction, suggesting that major players are accumulating. So far, even if the momentum has been slow, spot Bitcoin ETF issuers continue to stack Bitcoin on behalf of their clients, which is a positive development.
Even with Bitcoin struggling at spot rates, most analysts believe BTC will break out above $74,000 and fly to as high as $100,000 in the sessions ahead.
Still, a key driver to price will be fundamental factors, including the decision the United States Federal Reserve (Fed) will make in the coming session concerning interest rates.
Following better-than-expected factory data on April 1, some analysts think the Fed will be less aggressive in slashing interest rates in 2024 than earlier projects. However, if the Fed maintains rates at current levels, the government’s annual interest payments could balloon to $1.6 trillion by December, negatively impacting the economy.
Feature image from Canva, chart from TradingView