Crypto Cycle ‘Spookily Similar’ to 2017

Pal said macroeconomic data has likely been a primary catalyst in pushing the crypto cycle back further.

“It‘s like the whole cycle got shifted cause rates didn’t get adjusted; the dollar was sideways for a period of time,” he said.

He also said that current market conditions may resemble 2020 more than 2021, suggesting the market could be in an earlier growth phase than many assume.

“The mandate” of the Middle East is AI and blockchain

Bitcoin began 2020 at $7,174 but dropped 27% to $5,227 by March. It then rebounded 129% to reach $11,990 in August, ultimately ending the year at $28,993 — a 304% increase from its price at the beginning of the year.

Pal said for the market to keep expanding it needs to keep attracting the “bigger players.” He recounted his recent trip to the Middle East, where he met with Sovereign Wealth Funds and said that most had a bullish outlook on crypto:

“The mandate across the entire region, from Saudi to Abu Dhabi to Dubai to Bahrain to Qatar, is AI and blockchain.”

“Not just using Bitcoin as a reserve asset but also building the entire government infrastructure on blockchain,” he added.