Macro guru Raoul Pal believes that the shares of a US-based crypto firm may have an explosive breakout in the current bull market cycle.
In a video posted on Real Vision’s YouTube channel, the former Goldman Sachs executive suggests Coinbase’s stock has the potential to soar 10x.
“I think this bull market, the whole space will end up being $10 to $15 trillion, somewhere between that. So how much is Coinbase worth in that? I mean, it would not surprise me if Coinbase was worth $500 billion. It’s insane it’s so cheap, considering the size of the market that’s already there…
So if the [total crypto market cap] goes 5x, this probably goes 10x. That doesn’t sound stupid. That’s a hell of a trade for people. If people don’t want to trade the cryptocurrencies themselves, Coinbase is a hell of a trade.”
Coinbase stock was trading for $324 at market close on Monday, up more than 19% in 24 hours. The company has a current market cap of $81.17 billion.
Pal believes that the election of Donald Trump as US president and other victories by pro-crypto candidates to the US Congress positions Coinbase for a bright future.
Coinbase sunk tens of millions of dollars into pro-crypto super PAC Fairshake, a political action committee, in support of candidates who back digital assets.
Coinbase’s chief policy officer Faryar Shirzad recently celebrated the election results as a win for the industry.
Coinbase has been caught up in a legal battle with the U.S. Securities and Exchange Commission (SEC), which claims that the crypto exchange engaged in the unregistered sales of securities.
Says Pal,
“On the election, I thought it was pretty clear who won the election, Coinbase, because they had the super PAC, and Elon [Musk]. I mean, Tesla and Coinbase, you might as well just throw every other stock out you own and just buy those.”
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