The cryptomarkt performs strongly in recent weeks. While Bitcoin (BTC) sands close to his All Time High, Altcoins mainly make striking winnings. Yet macro investor Raoul Pal does not see every coin as a good choice. Some he even calls downright “debil”.
Why cheap coins have so much attraction
In a recent interview, right in the specifically out of XRP, Cardano (ADA) and Dogecoin (Doge). He indicates that many investors simply invest in these digital coins, simply because the price is currently low.
“When you see Bitcoin at $ 116,000 and Ethereum above $ 3,000, it feels unreachable. A coin like XRP at $ 3.27 or Dogecoin at $ 0.22 suddenly seems affordable,” he says.
The problem, according to Pal, is that many investors forget market capitalization. A cheap unit price does not automatically mean that there is a lot of growth potential.
The macro investor is talking about three types of investment categories.
- Of ‘Error-resistant ‘Layer-1 Networks: According to Pal, these are the proven Layer-1 projects that perform stable. He mentions Solana (SOL) and the relatively new sui (sui) as examples. Both have a broad adoption and a large developer community, making them less risky in his eyes.
- The ‘difficult middle layer’ of decentralized finance (Defi) projects: According to Pal, this is a much more difficult category to invest in successful. It requires specialist knowledge to select the right projects, and, moreover, timing is often crucial for returns.
- Finally, the investor talks about the ‘Stupid investment’where traders simply buy the cheapest top 10 coins without performing a deeper analysis.
According to Pal, this last strategy pops up every cycle as soon as the general public gets in massively again.
Waiting for the ‘Banana Zone’
Despite his criticism of certain altcoins, this cycle eventually sees what he calls the “Banana zone”: a phase of explosive growth, recognizable by the curved, banana -shaped price charts that arise during parabolic rises. In earlier Bullruns this phase always came to the end of the cycle. First Bitcoin shoots up sharply, after which the profits move to smaller projects.
According to Pal, the first signs of such a shift are now visible. For example, XRP broke through to a new record and Ethereum (ETH) reached its highest rating since 2021. The macrobregger expected that this ‘Banana Rally’ would erupt at the beginning of 2025, but now points to Donald Trump’s policy as an important delay.
According to him, the trade war with China has thrown a lot of soot in the works. Yet in the macro-economic figures he still reads clear signals for a possible, huge increase.
Source: https://newsbit.nl/raoul-pal-noemt-cardano-xrp-en-dogecoin-voor-debielen/
