Raoul Pal, a former executive of Goldman Sachs (NYSE:GS) expressed his bullish sentiments about Ethereum on Wednesday. He ended his argument by stating that “ETH is the better asset allocation for performance right now.”
Pal an important influencer in the cryptocurrency space. He was once time an executive at Goldman Sachs, where he co-managed the firm’s European hedge funds sales business in Equity and Equity Derivatives. After his time at Sachs, Pal co-managed the GLG Global Macro Fund for Man GLG. In 2005, he founded Global Macro Investor (GMI), a macroeconomic and investment strategy research company. He is currently the CEO of Real Vision, a finance and business video channel.
At the beginning of the year, Pal topped up on his ETH holding, reshuffling his portfoliofrom a ratio of 80% BTC/20% ETH to 70% BTC/30% ETH.
Yesterday, the CEO took to Twitter to explain why he is very bullish on Ethereum.
To be brutally honest, I stare at the chart of ETH/BTC and I see an enormous rounded bottom with potentially huge breakout just above.... pic.twitter.com/85hfawq0bx— Raoul Pal (@RaoulGMI) April 21, 2021
He started by admitting that Ethereum was a key piece of the DeFi and NFT community. According to him:
When you price anything up in DeFi, NFT, community tokens, or even metaverse worlds, everything is basically priced in ETH, including designers time, etc. ETH is rapidly becoming the currency of the digital world and BTC is the pristine collateral and base layer.He goes on to express his struggle with selling his entire Bitcoin holdings for Ethereum.
At this point in the risk cycle and with ETH 2.0 coming (cheaper fees and less supply), I’m struggling to not sell all my BTC to move my entire core position to ETH. To be clear – I’m a massive BTC bull, but I think ETH is the better asset allocation for performance right now.Pal is not alone in his thoughts. Peter L. Brandt, who is also one of the world’s most respected commodity traders, couldn’t help but agree with the former’s assessment. Responding to Pal, he said, “Raoul, I see it the same way.”
Putting but cryptocurrencies side-by-side, data on TradingView confirms that Ethereum has outperformed Bitcoin on a year-to-date basis. While Bitcoin is up by 87.07% against the US Dollar, Ethereum is up by over 233%. Furthermore, Ethereum is poised to reach higher levels following its transition to the much-anticipated Ethereum 2.0.
