The upcoming crypto summer will drive valuations of two digital asset subsectors to “stupid” levels, says Raoul Pal
Former Goldman Sachs executive Raoul Pal believes two digital asset subsectors could see absurd valuations as the market enters crypto summer.
Pal tells his one million followers on the social media platform
A “crypto summer” generally means higher prices and higher trading volume.
Says buddy,
“But the crypto summer and fall will be confusing because everything will have a narrative and will be drowned in euphoria.
This is when memes in pricing get really silly, unproven narratives like AI and RWA lead to stupid valuations, etc.”
He also believes that Ethereum (ETH) could outperform Bitcoin (BTC) and Solana (SOL) could outperform both Bitcoin and ETH during this time.
“Crypto summer is usually the start of altcoin season, which really bubbles up in the fall. This is when ETH hits its base and starts outperforming BTC. At this point, SOL is accelerating its outperformance against BTC and ETH.”
While the macro investor has a rosy outlook on crypto markets, he warns that digital assets will not move in a straight line towards new all-time highs.
“Also, we will see another two or so bad corrections due to excessive debt. The Banana Zone is coming.”
Pal previously said that cryptocurrencies are getting closer to the banana zone, a period in which Bitcoin and altcoins post parabolic rallies on the way to greater heights.
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