Bitcoin Price Will Hit $1 Million By 2025, Ex-Goldman Sachs Executive Predicts

Thanks to a massive inflow of money primarily from institutional investors, the price of Bitcoin will hit $1 million by 2025, said Raoul Pal, a former hedge fund manager at Goldman Sachs. Pal now runs Real Vision, a macro investment company.

Pal attributed the price increase primarily to institutional investors who would choose the benchmark cryptocurrency for its massive upside against the dollar and even gold. In an interview with Stansberry Research, Pal said the only problem, for now, is that there are no proper means for these people to put their money into Bitcoin. "But it's on everybody's radar screen, and there's a lot of smart people working on it," he added.

As to why institutional investors would go to Bitcoin, Pal cited the current and expected future state of the global economy. Investors, he said, have realized it will take a while before the world can recover from the COVID-19 pandemic. "There's no stimulus around, and we've got more problems to come in Europe, the U.S., and elsewhere. And businesses don't have enough cash flow," he added. In the United States, talks of a second stimulus package have been delayed and it is expected to arrive after the November elections.

With no money for people to spend, Pal said the global economy has moved on from "hope phase" to the "insolvency phase," forcing more businesses to close. To solve this, the central banks have been forced to print more money, and according to Pal, it's the reason why he started to buy more Bitcoin.

Printing more money would result in inflation and the weakening of the national currency, hence investors turn to stores of value like Bitcoin and gold. Pal, however, thinks Bitcoin is not just a store of value as he expects further upside to the benchmark cryptocurrency. For that reason, the percentage of Bitcoin in his entire portfolio has gone up to 50% now.

According to news outlet Business Insider, Pal acknowledged that having 50% of his assets into Bitcoin would expose him to more risks of a significant downside but it appeared the macro investor is fine with that. "The upside's so much bigger," he concluded.