Raoul Pal, a seasoned macro strategist, sees significant potential in Coinbase’s stock as the crypto market enters a new bull cycle. In a recent video on Real Vision’s YouTube channel, Pal predicted that the US-based crypto exchange’s shares could surge 10 times, driven by both market growth and political factors supporting digital assets.
Raoul Pal believes the overall cryptocurrency market could reach a value of $10 to $15 trillion in this bull market, which would make companies like Coinbase prime candidates for massive growth. “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?” he explained. “It would not surprise me if Coinbase was worth $500 billion.” He went on to emphasize the undervaluation of Coinbase, noting the company’s current market cap of $81.17 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’s Strong Position Amid Political Support and Legal Challenges
Pal also highlighted the potential for Coinbase to benefit from the political landscape in the U.S. He believes that the election of pro-crypto candidates, including Donald Trump’s presidential bid and other victories in Congress, sets the stage for Coinbase’s growth. Coinbase, through its super PAC Fairshake, has invested tens of millions of dollars in backing candidates who support cryptocurrency. Pal pointed to this strategy as a key factor in Coinbase’s future success.
Coinbase’s Chief Policy Officer, Faryar Shirzad, recently celebrated the election results, viewing them as a victory for the crypto industry. However, the exchange is currently facing a legal battle with the U.S. Securities and Exchange Commission (SEC), which accuses Coinbase of engaging in unregistered sales of securities. Despite this, Pal remains bullish on Coinbase’s long-term prospects, noting that it stands out among other stocks, especially with backing from influential figures like Elon Musk.
Pal concluded by calling Coinbase a solid investment choice for those who prefer not to directly trade cryptocurrencies. “If people don’t want to trade the cryptocurrencies themselves, Coinbase is a hell of a trade,” he said. With the current crypto market on the brink of expansion and strong political backing, Pal’s prediction of Coinbase’s potential 10x growth seems increasingly plausible for investors.
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