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Macro strategist Raoul Pal says the price of bitcoin will reach $1 million in five years. He attributes the price increase to adoption by large pools of investors and the enormous wall of money coming into bitcoin, rather than because the world is collapsing.

Former hedge fund manager Raoul Pal shared his view on the economy, gold, and bitcoin last week in a podcast interview with Daniela Cambone of Stansberry Research. Pal previously co-managed the GLG Global Macro Fund in London after departing Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. He then founded Global Macro Investor and Real Vision Group.

The economy is not going to recover for a lot longer than we expect, he began. Theres no stimulus around and weve got more problems to come in Europe, the U.S. and elsewhere. And businesses dont have enough cash flow, theyre closing in droves and thats what I called the insolvency phase. The former hedge fund manager added, The only answer is more from the central banks, so thats why I started to buy more and more bitcoin.

His portfolio used to be equally distributed between U.S. dollars, gold, equities, and bitcoin. However, he revealed during the podcast that his bitcoin allocation is probably above 50% now. While acknowledging that this BTC allocation exposes him to a 50% downside, he said it is ok for him because the upside is so much bigger.

Pal explained that he has reduced his cash holdings and put the funds into bitcoin. My trading positions are relatively small because I dont think theres as much opportunity as the room is in bitcoin. So really, mainly a bit of cash, some gold, and bitcoin. And Im even toying with the idea of selling my gold to buy more bitcoin, the founder of Global Macro Investor shared, elaborating:

I dont dislike gold but when you get to the macro opportunity if bitcoin starts breaking out of these patterns that its been forming, it is going to massively outperform gold. Im 100% sure of that so in which case why would I have the gold allocation.

The former Goldman Sachs manager clarified that he is not fearful of hyperinflation, default or anything else, adding that he is interested in people adopting a different monitoring unit for their savings and reserve assets.

Pal has a bullish forecast on the price of bitcoin, predicting that it will be $1 million within five years. He explained:

Its going to be not because the world is collapsing [but] its because theres gonna be adoption by the real large pools of capital.

He sees bitcoin adoption happening in waves, starting with retail and moving into hedge funds. However, he noted: We are not there yet. You cant prime broke bitcoin assets but thats coming. Were starting to see family offices in the space. Next is the institutions, the endowments, the pension plans, and within that youll find some government suddenly say we have allocated 5% in bitcoin. He believes that it will be a country such as Nicaragua or one with constant problems of currency devaluation. When that happens, he says it will be another huge story, much like the story of Microstrategy moving $425 million treasury reserve into bitcoin.

Emphasizing that the pipes arent there to allow large institutional investors to invest in bitcoin yet, he said, but thats coming its on everybodys radar screen and theres a lot of smart people working on it. Pal further shared:

From what I know, from all of the institutions, [and] all of the people I speak to, theres an enormous wall of money coming into this.

Do you agree with Pal? Let us know in the comments section below.

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'Enormous Wall of Money' Coming Into Bitcoin, Price to Reach $1 Million in 5 Years, Says Raoul Pal - Bitcoin News