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Bitcoin Will Hit $250,000 in 2021 From This 'Rocket Fuel,' Says Goldman Sachs Alum

The cryptocurrency is down 20% from April's all-time high of $64,829.

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It was a manic Monday in the crypto world as markets lost over half a trillion dollars across the asset space. Bitcoin was already on the downswing last week, plunging 30% from April’s all-time high after Tesla CEO Elon Musk said his company wouldn’t accept payments of the cryptocurrency due to environmental concerns. 

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However, former Goldman Sachs hedge fund manager, Raoul Pal, says he’s sticking to his $250,000 price target because ‘rocket fuel’ is coming, MarketWatch reports. 

“I think BTC goes well above $250,000 in the next 12 months and ETH [Ethereum] well above $20,000.” 

Ethereum ETHUSD, -1.38%, the second most popular cryptocurrency behind Bitcoin, is also down almost 20% from last week’s all-time high of $4,382.

Pal says a long-awaited U.S. exchange-traded fund should be announced by September. It should boost digital assets and lift prices across the whole crypto market “due to new sources of demand from RIA’s [registered investment advisers] and asset managers," he said.

In the meantime, Pal says corrections and volatility are part of the cryptocurrency landscape, and “35% pullbacks are normal.” 

Bitcoin’s 200% annualized returns are still the highest of any asset ever recorded. While that pace may slow over time, Pal says the crypto market’s adoption rate is still rising 113% a year, the fastest of “any technology in history,” including the internet boom between 1990 and 2000.