Raoul Pal, CEO & Founder at Real Vision, applies the economic cycle theory to predict a major disruption of the global financial system. He believes this will drive Bitcoin to new highs.

Despite the recent rally in the stock market, Pal sees dropping bond yields and falling commodity prices as signs the world economy is heading towards a grave recession. He states:

I think that the stock market is trading hope and the bond markets trading reality and the bond market will show us where the stock market will go.

According to Pals interpretation of the economic cycle theory a sequence of boom and bust periods in the world economy we are at the bottom of the downcycle, which means there is a high probability of major disruption in the global financial system.

The probability is high that we have to move to a new financial system. And that will probably involve digital currencies in multiple formats.

According to his readings of the charts, Pal is opposed to the narrative that tells us the Fed money-printing will generate inflation.

We're not necessarily creating higher prices because maybe the price of goods is falling faster than the price of money.

Still, Pal predicts that the devaluation of currencies all around the world will pave the way for the Bitcoin price to rise 50x to 100x in the next five years. In this scenario, Bitcoin has a high chance to become a widely adopted reserve currency.

Think of it as your own sovereign currency that you can always go to if your governments are acting bad.

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CEO at Real Vision Raoul Pal Bets on Bitcoin Up 100x in Next Five Years - Cointelegraph

The digital era has well and truly come to life around us. Modern marvels like digitalisation and technological advancement have become more and more pronounced all the time. So much so, in fact, that today these modern marvels are thought to be more instrumental and prominent than they have ever been. We see the evidence of these modern marvels all around us, all the time, today. More than ever, digitalisation and technological advancement are not only present but are becoming more and more ingrained in the way of the modern world. Practically every aspect of life as we know it and every corresponding industry has found itself having to adapt and embrace these modern marvels in order to realign with the way that the modern world is moving. Think of the innovations in the finance industry that spans the globe, for instance. The finance industry has always been one of the most important industries in the world. Now, that is a point that has arguably never been truer. Within the finance industry, there have been many great innovations over the years (and especially in recent years).

Cryptocurrency and namely the globally leading cryptocurrency Bitcoin is one of the most revolutionary innovations in the industry to date. In fact, in many ways Bitcoin is considered the founding father of the cryptocurrency wave. The first cryptocurrency to make it out of the gate and into the market, the Bitcoin network that came hand in hand with Bitcoin itself has been steadily growing ever since. While other cryptocurrencies have since come onto the scene and attempted to take the top spot in the cryptocurrency landscape, the simple fact is that Bitcoin remains the leading digital currency around the globe. Now, the rising trend of Bitcoin currency exchange is taking the financial landscape by storm. So, what is Bitcoin currency exchange and why does it matter? Essentially, Bitcoin currency exchange refers to the ability for Bitcoin holders to buy, sell, and trade their Bitcoins specifically through the Bitcoin blockchain network.

From Bitcoin Euro to Bitcoin Yen, and every Bitcoin in between and beyond, this is an emerging trend that is quickly gaining momentum among Bitcoin holders around the globe. Exchange-built blockchain platforms form the basis for blockchain currency exchange (and cryptocurrency currency exchange in general, for that matter) and they work their magic by essentially allowing Bitcoin holders to take control of their Bitcoin value not just individually but on a global currency exchanging platform. Bitcoin currency exchange essentially allows Bitcoin holders to buy, sell, and trade Bitcoin for traditional currencies around the globe. For a long time, the lack of transition between Bitcoin and traditional global currencies was a big gap in Bitcoins framework. Now, the solution is seemingly finally here. This allows Bitcoin holders to take back control of their digital currency holdings. These types of digital asset exchanges are all about attracting the attention of as many Bitcoin traders as possible so that the user base is given a boost.

Anyone who has experience with Bitcoin knows that the user base functions as a core driver of Bitcoin profits both per holder and around the globe. When it comes to addressing the question of why Bitcoin currency exchange matters, what it essentially comes down to is the fact that Bitcoin currency exchange allows Bitcoin holders the freedom and flexibility to invest in Bitcoin how, when, and where they want to while simultaneously giving them the opportunity to trade their Bitcoin for traditional currency. It is a whole new world and it is one that is steadily gaining more momentum all the time. This is the future of Bitcoin and of currency exchange and it is a future that is becoming more and more profoundly appreciated and interesting as time goes on. We are seeing a growth in Bitcoin currency exchange right now, however this current growth is likely going to prove to be just a glimpse of what is going to be possible going forward into the future and beyond.

As the digital era has come to fruition, steadily rising up and up, it has also come with many modern marvels, all of which have had their own impact on the way of the world. Digitalisation and technological advancement, for instance, have found themselves revolutionising practically every aspect of life as we know it and every corresponding industry in the process. The finance industry is without a doubt one of the most heavily impacted and revolutionised industries in the world when it comes to these innovations and their ongoing impact. Of all the great innovations to be felt in the finance industry, the rise of Bitcoin is without a doubt one of the most innovative and momentous to date. Today, Bitcoin currency exchange and the general utilisation of Bitcoin is at an all-time high and it is only expected to get bigger and better as time goes on. This is likely just the start for Bitcoin currency exchange and that is exciting.

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Understanding the Growing Trend of Bitcoin Currency Exchange - The Duke Perspective - Duke Today

Bitcoin successfully went through its third halving yesterday, seeing the daily supply of new bitcoin cut by half.

The bitcoin price, which had been highly volatile in the run-up to yesterday's closely-watched halving, has remained flat since the supply squeezeup a little over 1% and hovering around $8,800 per bitcoin.

The bitcoin community has now turned to what's next for the world's number one cryptocurrency and the bitcoin price.

The bitcoin price has soared over recent months and many bitcoin and cryptocurrency traders are ... [+] feeling bullish after the third bitcoin halving.

Yesterday evening, the number of bitcoin rewarded to those that maintain the bitcoin network, called miners, was cut by halfdropping from 12.5 bitcoin to 6.25.

Many had warned the bitcoin price could crash the aftermath of the halving but most analysts seem confident the bitcoin price will climb eventually.

"The recent much-hyped halving, while largely psychological in impact, could create a catalyst drawing new players into the market and contributing to the rise in the value of bitcoin," said Gavin Smith, chief executive of Hong Kong-based bitcoin and cryptocurrency exchange and hedge fund Panxora, adding he believes bitcoin is at "the start of a multi-year bull phase" though there could be "a bumpy road ahead."

Last week, the bitcoin and crypto community was set alight by news legendary macro investor Paul Tudor Jones is buying bitcoin as a hedge against the inflation he sees coming as a result of unprecedented coronavirus and lockdown-induced central bank money-printing.

"While traditional markets grow uncertain, we can expect more investors to use bitcoin as an inflation hedge and to protect their assets against currency devaluation," said Smith.

Congress and the Federal Reserve have pumped trillions of dollars into the U.S. economy in recent months to cushion against the coronavirus pandemic and lockdowns designed to slow its spread.

The massive action from the U.S. as well as other governments and central banks around the world has sparked fears over inflation and out-of-control debt.

However, investors have rushed toward the perceived safety of the dollar since the coronavirus crisis began.

"The rest of the world needs to either keep printing money or see their own currency eroding drastically in front of the unbeatable dollars," said Jean-Marie Mognetti, chief executive of digital asset manager CoinShares.

"Turkey, Brazil, or Argentina are the perfect examples of this. Consequently, in a world where investors continue to seek protection for their portfolios against the worlds central banks' behavior, bitcoin, a digital currency whose supply is programmatically defined to reduce until it reaches its maximum supply, would seem to be the perfect hedge for any institutional investor portfolio."

If bitcoin successfully matures into a safe-haven asset and a hedge against inflation, some analysts see the bitcoin price accelerating over the next couple of yearspotentially eclipsing its all-time high of around $20,000 per bitcoin.

I am confident we will see a new all-time high within 18 months, in the $20,000 - $50,000 region," said Simon Peters, market analyst at brokerage eToro, putting the top of the next bull market at around $100,000 to $120,000 per bitcoin.

However, Peters warned "another black swan event," such as the coronavirus pandemic, or a second wave of COVID-19, could see the bitcoin price decline.

The bitcoin price is up 25% over the past 12 months and bitcoin has now recovered all its ... [+] coronavirus crash losses.

Meanwhile, bitcoin miners are nervously eyeing the bitcoin priceand hoping it holds.

"At this price level, miners using rigs from 2016-18 will not be profitable," said Rich Rosenblum, co-head of trading at crypto market maker GSR.

"Theyll start to stream out of the market, lowering bitcoins hash rate. Its likely that more bitcoin will be sold by miners to help finance new machines. Additionally, the production of new machines has been slowed by the pandemic and its impact on the supply chain. Depending on how long prices stick around this range, we may not see this level of mining activity recover until next year."

Bitcoin's hash rate, a measure of the computing power being directed at the bitcoin network, climbed to a fresh all-time high ahead of the halving as miners tried to squeeze as many bitcoin from the network as possible before the supply cut.

If too many miners begin selling freshly minted bitcoin to pay for their operations, they could flood the market.

"If the price of bitcoin goes down, it will likely force weaker miners to wind down their operations," said Jerry Chan, chief executive of TAAL, a publicly traded crypto mining company focused on bitcoin offshoot bitcoin SV.

"They are selling the bitcoin in their treasury to pay off their financial commitments to the hashing farms for hosting and electricity. That constant liquidation is flooding the market to the downside, making it harder for other miners to continue to operate at a break even or profitable manner."

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Bitcoin Has HalvedWhat Now? - Forbes

Bitcoin appears to be running out of steam just before one of the most anticipated milestones among cryptocurrency enthusiasts.

The largest digital token tumbled over the weekend, declining about 13% to around $8,675. It rebounded to about $8,840 as of 10 a.m. in New York trading on Monday. The decline took place ahead of a closely watched technical event known as its halving, when the rewards miners receive for processing transactions will be cut in half as soon as later today.

Bitcoin Tops $10,000 First Time Since February, Before Halving

Its likely that were going to see increased volatility through May, with the pandemic, ongoing stimulus measures and the halving, Rich Rosenblum, co-head of trading at crypto market maker GSR, said in an email. The record open interest for futures and options at multiple exchanges adds to this. The market is in a state of information and position overload, exacerbating the potential for volatile moves.

Still, Bitcoins up near 25% this year and among its newest fans is famed macro investor Paul Tudor Jones, who said hes been buying Bitcoin as a hedge against the inflation he sees coming from central bank money-printing.

Its not the great cure for all the monetary ills, et cetera. Its a great speculation, Jones, the founder and chief executive officer of Tudor Investment Corp., said in an interview with CNBC on Monday. Hes got over 1% of his assets in Bitcoin, though it might end up being a top performer within his portfolio, he said.

Earlier: Paul Tudor Jones Buys Bitcoin With Reminder of Gold in 1970s

Bitcoin, which is a little more than a decade old, has not stood the test of time, said Jones, but the digitization of the world clearly benefits the token. He sees an expanding user base for the cryptocurrency, a hallmark of every bull market, and anyone buying Bitcoin is betting that universe will continue to broaden.

Were watching the birthing of the store of value -- and whether that succeeds or not, only time will tell, said Jones in the interview. What I do know is, every day that goes by and Bitcoin survives, the trust in it will go up.

In the near-term, many Bitcoin are looking forward to its halving, which happens about every four years and slows down the rate at which new tokens are created -- an intentional feature designed to control inflation. Bitcoin has historically bottomed 459 days prior to the halving, risen into the event and jumped after, according to research from Pantera Capital. Post-halving rallies averaged 446 days.

Heres a QuickTake on what Bitcoins halving means.

So far, Bitcoins third halving looks different to prior events and there doesnt appear to have been such a sustained price run-up, said Payal Lakhani, director of equity research and product development at CME Group, in a blog post Friday. Given the reward change has been known since Bitcoins inception in 2009, and having already seen two such events, investors may have already incorporated the supply adjustment into their models and taken positions accordingly.

The impact of Covid-19 has resulted in lower volumes as some participants focused on non-crypto markets, and some mining operations being affected by these difficult market conditions, Lakhani said.

With assistance by Eric Lam

Before it's here, it's on the Bloomberg Terminal.

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Bitcoin Crashes as Halving Hype Loses Impetus Over the Weekend - Bloomberg