Benzinga - by Bibhu Pattnaik, Benzinga Staff Writer.
Former Goldman Sachs executive Raoul Pal has predicted a significant surge in Bitcoin (CRYPTO: BTC) and the overall crypto market in the fourth quarter of the presidential election year.
What Happened: Pal, in a conversation with crypto trader Scott Melker streamed on YouTube last week, stated that risk assets like Bitcoin and other cryptocurrencies typically experience rallies during Q4 of an election year.
“The backend quarter of an election year is true banana zone for all assets. It always is. So you know that you've got a very, very, very high probability that by autumn things are utterly ripping,” Pal expressed.
Earlier this year, Pal suggested that politicians usually “hand out candy” in the form of stimulus packages during elections. This leads to higher inflation and, as a result, higher prices for digital assets.
He also pointed out that Solana (CRYPTO: SOL) seems to be respecting its diagonal support while trading in a triangle structure, indicating an uptrend.
Also Read: Anthony Scaramucci Says Crypto Will Soar If This Presidential Candidate Wins The Election: ‘I Think We’ll See All-Time Highs For Bitcoin And Other Assets’
“If you wanted a cheeky top-up of your SOL position, this would likely be a good entry zone … let's see! The bananas are slowly ripening … but should be magnificent in the autumn,” Pal added.
Why It Matters: Pal’s prediction comes at a time when the crypto market is experiencing significant volatility. His comments about the “banana zone” suggest a period of high returns for crypto investors.
His prediction of a Q4 rally aligns with historical trends where cryptocurrencies have seen significant gains during the last quarter of the year.
However, it’s important for investors to exercise caution and conduct thorough research before making investment decisions.
Read Next: If You Invested $1,000 In Solana (SOL) When Sam Bankman-Fried Got Arrested, Here’s How Much You’d Have Now
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.