Former Goldman Sachs executive Raoul Pal stated that the cryptocurrency market could follow a strong upward trend by the end of 2024. In an interview with cryptocurrency analyst Scott Melker, Pal noted that Bitcoin 
$98,937 and other cryptocurrencies could achieve remarkable gains in December based on historical data.
Year-End Rally Expectations
Pal emphasized that there is typically a “Christmas Rally” in the market towards the end of the year. “During this period, stock markets tend to rise in the last five business days of December and the first two business days of the new year. The same trend can be observed in cryptocurrencies,” Pal stressed, indicating that he anticipates a rise around these dates. However, he believes that the most significant movements will occur in the first quarter of the new year.
“Generally, it is expected that everything shows a strong rise towards the year-end. However, the main action occurs in the first quarter,” Pal stated, attributing the market’s main momentum to the Federal Reserve’s meeting in March. He expects serious market fluctuations following a potential interest rate cut by the Fed.
Attention to Liquidity Tightening
Raoul Pal pointed out that the market is currently facing tightening liquidity. “I am creating a chart that illustrates the tightening of global liquidity, and its effects are being felt in the markets with a 10-week delay. This implies that there could be a correction at the end of the year,” he remarked.
Discussing Bitcoin’s current situation, Pal mentioned that increasing money supply supports Bitcoin prices, while decreasing supply leads to falling prices. He recalled similar scenarios from 2020 under the Trump administration, stating, “During that period, from September until the end of the year, the dollar and interest rates rose. However, by year-end, those rates fell, leading to market recovery. We may see the same situation occurring with the current global liquidity tightening.”
Pal added that significant gains could be seen in the cryptocurrency markets by the end of the year, but he cautioned about potential fluctuations during this process. He advised cryptocurrency investors to closely monitor market movements, emphasizing that the upcoming year will be critical for market strategies.
