Bitcoin and Ethereum: 2024 Shaping up to be a Strong Year – Raoul Pal
Raoul Pal, CEO of Real Vision, said 2024 will be a great year for the two largest digital assets by market cap.
In a new interview with crypto influencer Scott Melker, Pal said that 2024 will be a strong year for Bitcoin (BTC) and Ethereum (ETH).
According to the investment strategist, current market conditions mirror those seen in 2018 before the bottom. This suggests that digital assets should see significant gains over the next 18 to 24 months as adoption increases.
“Once the Fed pivoted, there was a complete turnaround in the markets. In 2018, we saw the kind of decline we’re seeing now, about 20-30%.
It was abrupt, it was uncomfortable, [and] everybody was horrified, and then the Fed said, “Okay, I’m sorry, yes, we see economic data getting worse, inflation going down, so we’re going to stop.”
I think the S&P  went up 15%, oil went up similarly, and the NASDAQ jumped up about 20%.”
He also accented that Bitcoin and Ethereum went up between 300% and 400% in just nine months.
Pal argues that Metcalfe’s Law is the reason why BTC and ETH will have a strong year. Metcalfe’s Law states that the value of a network is directly related to the number of users it has.
The fascinating thing about this trend, especially with Ethereum, is that the volume remains relatively high. The number of active users remains high.
He commented that 2018 saw a much larger drop in daily active users, likely due to the earlier adoption phase of the network. This cycle provides an opportunity to build on the past ones, Pal pointed out.
“So we’re in a long-term adoption cycle where Metcalfe’s Law comes into play, which is responsible for exponential increases.
Every time we get into a situation like this, we reach new highs within 18 months, two years at the most… So I expect 2023 to be a decently good year and 2024 to be an exceptionally good year.”