Former Goldman Sachs executive Raoul Pal believes two sub-sectors of digital assets could witness absurd valuations when the market hits crypto summer.
Friend tells its million followers on the social media platform
A ‘crypto summer’ generally means higher prices and higher trading volume.
says friend,
“But Crypto Summer and Fall will be confusing because everything will have a story and will be mired in euphoria.
This is when memes get really ridiculous in terms of price, unproven stories like AI and RWA go to stupid valuations, etc.
Him too believes that Ethereum (ETH) could outperform Bitcoin (BTC) during this period and that Solana (SOL) could outperform both Bitcoin and ETH.
“The crypto summer is usually the start of the alts season, which is completely ‘bubble-tastic’ in the fall. This is when ETH settles in and starts to outperform BTC. This is when SOL accelerates its outperformance against BTC and ETH.”
While the macro investor has a rosy view of the crypto markets, he warns that digital assets will not move in a straight line to new all-time highs.
“We will also see another two or so nasty corrections due to excessive leverage. The banana zone is coming.”
Pal previously said that crypto is getting closer to the banana zone, or a period when Bitcoin and altcoins witness parabolic rallies on their way to greater heights.
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