Raoul Pal, a former head of European hedge fund trading at Goldman Sachs, is preparing for a massive crash of the global financial system.

In a recent podcast hosted by Howard Lindzon, the investment strategist and founder of Global Macro Investor and Real Vision Group predicts that stocks will plummet by 20% in the short term before recovering for three or four months. In the long term, however, Pal expects many companies to go down in flames because of the recent coronavirus, which is crippling several sectors of the economy.

I think it’s very likely that this is going to be a much longer event in terms of the economic impact… And I think it’s going to be the biggest bankruptcy event in history.

Pal believes that the coming crisis will be so devastating that it will permanently change the mentality of the next generation.

This is a generational shift… What it does is it makes the younger generation see everything differently forever. They will look with a certain mistrust at the pension system, which will fail. They will look across the bond markets in such a way that they will think „this is just not for me“. They will have different opinions about risk and savings than previous generations.

To illustrate how an entire generation’s attitude to the financial system can change, Pal said that we should look at the millennials.

The Millennials have already been damaged in 2000 and 2008. They don’t trust the financial system… They will reject what was before them, and they will accept things that are new and different.

To protect himself from the aftershocks of the coronavirus pandemic, Pal reveals that he has moved a significant portion of his assets to Bitcoin.

Of the net liquid cash available to me… my allocation, in which I plan to participate over the next 12 months, probably even longer, consists of 25% Bitcoin, 25% gold, 25% cash and 25% trading opportunities.

Morgan Creek co-founder predicts Bitcoin all-time high in September

But not only Pal, but also the co-founder of Morgan Creek, Jason Williams, is extremely optimistic for Bitcoin (BTC). He expects the world’s leading cryptocurrency to perform spectacularly in 2020, despite the economic turmoil that has shaken almost all industries as the Covid 19 pandemic continues to spread. The CEO of the digital asset management company says that he believes the world’s leading crypto currency will surpass its all-time high of $20,000 in September.

Despite the general optimism, Williams says he is actually bearish in the short term and does not believe Bitcoin will recover before the halving that will take place in May. If the amount of Bitcoin that miners earn to power the network is halved, Williams says, many could be forced to sell their BTC holdings to keep the lights on, creating an opportunity for investors.

Although Williams believes Bitcoin will see a $20,000 price tag this year, options traders do not share his ultra-bullish forecast. The data analysis company Skew shows that the options market gives Bitcoin a 3% chance of reaching a new all-time high by September 20.