By RealVision CEO Raoul Pal, a former Goldman Sachs hedge fund manager, suggested that periods of significant liquidation offer favorable buying chances for Bitcoin.
His comments came after Bitcoin hit a new all-time high above $69,000, before tumbling to around $63,000 on Tuesday.
After the price correction, CoinGlass data showed that the crypto market saw more than $1.17b in liquidated positions. More specifically, around 296,908 traders faced liquidation, totaling about $817m for long positions and about $234m for short positions.
“Days like today when there’s liquidation, that’s a great day to put some money at work,” Pal said in a RealVision TV episode published Wednesday.
Raoul Pal Calls Crypto Market ‘Ludicrous’
Pal, who previously predicted Bitcoin could hit $1m by 2025, described crypto as the most “ludicrous market” anyone could be involved in.
He detailed the extremes of the market, citing its high returns, volatility, and intense emotions among investors. He also highlighted the rollercoaster nature of crypto, where euphoria can quickly turn to despair with sudden market reversals.
Pal Opts for Passive Investing
Additionally, he warned against the prevalence of leverage in crypto trading, as it can exacerbate the already volatile nature of the market. By allowing traders to amplify their positions beyond their initial investment, leverage increases both potential gains and losses.
“You have to think of it as a computer game,” he said. “It’s so ridiculous.”
The ex-banker said that he last bought any crypto in Jan. 2023. He now adopts a passive approach, simply holding onto his crypto investments without actively managing them.
“It’s really as simple as that. You get paid to do nothing,” he said.
The post Ex-Goldman Exec Sees Liquidation Period as Bitcoin Investment Window appeared first on Cryptonews.
