Raoul Pal It is estimated that the cryptocurrency market will reach $10 trillion in the next 18 to 24 months and could grow to $100 trillion by 2035. Real Vision The Chief Executive believes that increased global liquidity, AI investment, stablecoins, and tokenized assets will support the long-term growth of the crypto market.
Pal stated at the Suie Base Camp held in Singapore on October 7th that crypto prices are still below their long-term trend, but he warned that financial conditions have not yet signaled a sustained recovery.
This outlook emerged within 24 hours on October 8th and 9th, after over $1 billion in leveraged crypto positions were liquidated, with most of the losses affecting traders who had bet on price increases.
Bitcoin is undervalued.
Pal indicates that the trading price of Bitcoin is below its long-term trend, and it still appears to be undervalued compared to tech stocks. However, he does not expect an immediate rebound, as the global liquidity situation remains weak.
He pointed out that long-term interest rates, oil prices, and the US dollar are key factors affecting financial markets. A weaker US dollar and improved liquidity will provide a stronger signal for crypto prices.
Pal said, "The prices of cryptocurrencies are really too cheap, far below where they should be." He added that investors should focus on the long-term trend, rather than just watching short-term price fluctuations.
Pal also suggests that investors who cannot withstand sharp market declines should reduce their exposure and retain funds in order to use them when buying opportunities may arise.
AI Investment may extend the encryption cycle
Pal denied the view that "an increase in AI's investment will inevitably lead to a major debt crisis." He believes that the debt of large technology companies is generally low relative to their market value and cash generation capabilities.
He admitted that if revenues fail to meet expectations, some AI infrastructure companies may face financial problems. However, he believes that even if companies like OpenAI fail, it will not automatically terminate the broader AI investment cycle, as other companies can acquire their computing infrastructure.
Pal compares the current AI investment boom to the telecommunications expansion at the end of the 1990s. Although some telecommunications companies went bankrupt after investing heavily in internet infrastructure at that time, these networks later supported a broader adoption of the internet.
He also expects that AI will improve productivity by reducing the costs of computing and generating intelligence. In his view, greater increases in productivity can help drive economic expansion without requiring debt to rise at the same rate.
Pal indicates that investors should not assume that Bitcoin's traditional four-year cycle will determine the timing of the next market peak, as broader economic and technological trends may extend this cycle.
Stablecoins and tokenized stocks may drive growth in the crypto industry
Pal believes that stablecoins and the tokenization of real-world assets are important sources of demand for future blockchain networks.
Stablecoins can support payments and transactions, while tokenization allows traditional financial assets such as stocks, bonds, and investment funds to be represented on the blockchain.
He expects that financial institutions will move more assets onto the blockchain, thereby expanding the scope of use of blockchain infrastructure beyond cryptocurrency transactions. Pal believes that AI agents using digital financial services may also generate demand.
When talking about the scale of this opportunity, Pal said, "We will reach a stablecoin scale of one trillion dollars within the next four to three years."
His estimate reflects his expectation of continuous growth in stablecoins, rather than a guarantee of market outcomes.
Raoul Pal Targets for the Cryptocurrency Market: $10 Trillion and $100 Trillion
Pal It is estimated that the total market value of cryptocurrencies will reach around $10 trillion within 18 to 24 months and may reach $100 trillion by 2035.
These are predictions for the entire market, and not specific price targets for Bitcoin or Ethereum. Pal does not provide prices for individual cryptocurrencies in the aforementioned statements.
To achieve these valuations, it depends on the continued advancement of encryption, the improvement of liquidity, and the increased use of blockchain networks in financial transactions. The outcome also depends on how the market value is allocated among Bitcoin, Ethereum, and other digital assets.
Pal indicates that the financial system is beginning to shift towards blockchain-based infrastructure, and stablecoins and tokenized securities are among the developments he expects will support growth.
What factors might affect the price of cryptocurrencies next?
Pal says that the market still lacks clear signs of a sustained recovery. Investors should pay attention to global liquidity, the trend of the US dollar, oil prices, and interest rates to determine whether financial conditions are improving.
Stablecoin supply is another indicator worth monitoring, as it can measure the scale of dollar-pegged assets available in the crypto market.
Although Pal remains optimistic about the long-term outlook, further tightening of financial conditions could prolong market volatility. His predictions depend on improvements in liquidity and the continued advancement of adoption; however, neither of these can guarantee that crypto prices will rise according to a specific timeline.
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