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Raoul Pal: “Bitcoin volatility is a friend of cryptocurrency traders”

Raoul Pal, former hedge fund manager Goldman Sachs and CEO of Real Vision TV, cites bitcoin volatility as a positive factor for the cryptocurrency market.

Raoul Pal admitted that bitcoin cannot be constantly and stably held at the same level, which is typical for conventional reserve assets like gold and silver. On the contrary, Bitcoin can show movement of more than 5% per day. The cryptocurrency enthusiast believes that this is normal and called the volatility of bitcoin a function that determines the reward for risk. Pal recommended that investors and traders look at the high volatility of digital assets “through the eyes of an optimist” and regard it as a positive moment for the cryptocurrency market.

“Without such price volatility, it is impossible to achieve a cumulative annual return of 230%. Volatility is a friend of cryptocurrency traders, ”said Raul Pal.

In just three months of 2021, the bitcoin rate has more than doubled, making it one of the most profitable assets, says Pal. Considering that the first cryptocurrency recently bounced over the $ 60,000 mark again, this year there is even more potential for its growth, despite the volatility and large fluctuations in the market. Pal called such a breakout a “big event” that would push Bitcoin to a new round high. Earlier, the entrepreneur suggested that by the end of the year, BTC could grow to $ 250,000. In addition, the interest of financial institutions will continue to influence the growth of bitcoin.

“Some are preparing to invest in bitcoin, others have already bought it, and still others are evaluating its capabilities. Bitcoin is the most efficient asset class in the history of the financial market, ”added Pal.

Raul Pal also believes that regulators should not tighten control over the cryptocurrency market. In this case, regulation will not hinder the development of digital assets, but, on the contrary, will allow attracting more capital to the industry. However, the president of the European Central Bank (ECB) Christine Lagarde is convinced that the excessive volatility of bitcoin is another reason why it is necessary to tighten supervision of cryptocurrencies.

Former chairman of the US Securities and Exchange Commission (SEC) Jay Clayton recently stated that Bitcoin will not be able to escape regulation in the future, even if it is not considered a security.

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