Based on the rise of the ETH/BTC pair, Pal said that Ethereum shows strength over Bitcoin and it could lead the way to move the crypto market out of correction.
By Bhushan Akolkar
Updated
2 mins read
The crypto markets have entered severe volatility fueled by Elon Musk and China news ahead this week. After Wednesday’s massive crash, the crypto market regained the lost ground. However, Bitcoin (BTC) and most other altcoins are still down by a big margin on weekly charts. But former Goldman Sachs investor Raoul Pal is betting big on Ethereum (ETH). The Vision Group CEO believes that Ethereum holds the potential to get the crypto market out of this correction phase. Pal’s comments, however, came earlier this week during the Monday crash following Elon Musk’s tweets. Pal suggested the technical chart of Bitcoin hints at a consolidation phase.
After the weekend FUD fest and shit fighting, let's get back to the important stuff. BTFD.
BTC is forming a wedge most likely…perfectly normal correction and healthy. pic.twitter.com/Kyhx7kCZTQ
— Raoul Pal (@RaoulGMI) May 17, 2021
For Ethereum (ETH) Raoul Pal suggested that investors can add it further if they have extra cash in hand. Soon after Pal’s comments, Ethereum (ETH) tanked to $2000 during the Wednesday price crash. However, it has recovered over 30% from the bottom. At press time, Ethereum is trading at $2738 with a market cap of $318 billion.
But Pal seems to be right here because, despite the current volatility, Ethereum’s on-chain fundamentals continue to improve further. Even during the Wednesday crash, the Ethereum supply at the exchanges continued to decline. On the other hand, a large number of ETH were moving to the Ethereum 2.0 deposits contract.
However, the exchange reserves of ETH are still declining, and the ETH deposited in Ethereum 2.0 for collateral is still growing, and has not been affected by the fall in the price of ETH, showing the stability of the Ethereum ecosystem. pic.twitter.com/RNykr9A00b
— Wu Blockchain (@WuBlockchain) May 19, 2021
Furthermore, the growth of DeFi users on the Ethereum platform has been phenomenal. Below is the look at the charts as to how Defi users have surged by 20x in the last two years.
Chart depicting user growth of defi on ethereum. pic.twitter.com/rGoTLBt7m8
— Documenting Ethereum 🦇🔊 (@DocumentEther) May 20, 2021
The US is still waiting for the launch of its first Bitcoin ETF and investors are sitting on the edge looking at the regulatory developments. Raoul Pal thinks that an exchange-traded fund (ETF) could be a game-changer for the market. He added:
“This is my view… The ETF (exchange-traded product) is the next rocket fuel for this market. The Wall of Money keeps coming but it takes time for everyone to get internal approvals. I have so many conversations helping hedge funds, Family Offices and Asset Managers each week. All happening and more…”
All eyes are currently on the US SEC and its decision on VanEck Bitcoin ETF pending approval. On the other hand, other markets like Canada and Brazil have already rolled out these products and have received a solid response from investors.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
