• Raoul Pal is warning crypto investors that the crypto market could potentially crash twice over the next 6 months.
• With institutional investors making decisions quarterly, Pal expects to see a huge institutional inflow in Q1 2022.

Although many involved in the cryptocurrency space agree that the market is likely to end the year strong, going into the coming year remains a big question. If the start of 2021 is anything to go by, the market could easily double in a couple of weeks. Several developments such as ETFs and protocol upgrade such as Ethereum 2.0 and Bitcoin taproot upgrade all support a bullish case.

Former Goldman Sachs hedge fund manager Raoul Pal believes this to be the case and further predicts a huge institutional inflow between January to March.

Related: Crypto market cap approaches ATH of $3T, market analyst says it’s not too late to buy with $100T possible

Although Pal is generally optimistic, he has warned that investors could suffer a couple of dips in the next few months. In an interview he noted;

My guess is that we probably have a sell-off, and then it rips again because that is the path of most pain and markets tend to take the path of most pain.

Institutions coming in 2022

Explaining that institutions tend to make decisions in quarters, the analyst expects that in the coming year, the market will witness huge institutional investment. He went on to add

Institutions tend to make asset allocation decisions by quarters, and my guess is January to March quarter next year we’re going to see a huge inflow.

Pal is particularly optimistic about Ethereum (ETH) and sees the upcoming Ethereum 2.0 as a major development that will fuel prices. In addition, the much-discussed Ethereum ETF is also a potential catalyst as retail and institutional investors gain access to the digital assets. The analyst further anticipates demand for Ethereum to continue rising adding that “Everybody is staking their ETH. It’s creating this incredible supply and demand imbalance in ETH where there’s only about 11% of the total ETH supply available.”

As for Bitcoin, adoption continues to rise with U.S politicians also coming out in support. Miami mayor Francis Suarez and newly elected New York mayor Eric Adams have announced that they will be receiving their paychecks in Bitcoin.

Read More: New York City mayor-elect Eric Adams strikes crypto-friendly tone, promises a crypto hub

At the time of press, the two of the largest cryptocurrencies by market cap are consolidating. Bitcoin has been able to hold above $60,000 but is facing resistance at the $63,000 high. Ethereum on the other hand since marking a new all-time high just above $4,800 a few days ago, is consolidating around the $4,300 levels and preparing for another breakout.