The next cryptocurrency bull run won't be like the last one, and investors should temper their expectations that cryptocurrency prices are about to skyrocket.
At least that's what Lars Seier Christensen, founder of the Concordium enterprise blockchain, said in a recent interview.
As much of the crypto market looks at proposed Bitcoin spot exchange-traded funds with a bullish bias, Christensen suspects their approval will be an immediate meaningful boost to the money market. electronic.
“Even if you get a price increase #Bitcoin, I don't think you should automatically assume everything will increase with it.”
“Does that necessarily mean that Ethereum and many older altcoins will also increase in price because of it? I think that will almost certainly not happen,” Christensen added.
Christensen said that, while digital asset prices have fallen over the past 18 months, there is conversely unabated interest in blockchain technology from the enterprise side.
This means that the next big move for the industry will not be marked by a particularly “glamorous” bull run where cryptocurrency prices skyrocket as happened in 2021, but rather a Slower growth will occur gradually over the next 18 months, noting:
“The only reason these types of companies need cryptocurrency is to do what they want to do on a certain blockchain. So I think it's very clear that you need to keep in mind they don't really need a certain cryptocurrency to increase in value significantly.”
However, not everyone is inclined to agree with Christensen.
Ben Simpson, founder of crypto education platform Collective Shift, said there is a lot of data and indicators that suggest we are seeing the early stages of a Bitcoin bull market.
“The decline from the all-time high chart and market-to-real value ratio suggests we are in the final accumulation phase, which is often a precursor to the market,” Simpson explains. cow".
When it comes to the assets with the biggest boom potential, Simpson believes the next bull market will breathe new life into Bitcoin, #ETH as well as tokens and application-specific sectors like game.
“DeFi tokens have risks but significant rewards, and I believe Bitcoin emerges as the “silent winner” in the wider adoption landscape and the one I am most optimistic about.”
The past two years have been difficult for the cryptocurrency industry. An increasingly hawkish US Federal Reserve combined with several high-profile collapses, including FTX and Celsius Network, has seen investment in the industry decline, dragging down cryptocurrency prices down.
With the US Federal Reserve deciding to pause any interest rate hikes earlier in the week, eToro Markets analyst Josh Gilbert views the broader macro outlook with a sense of optimism.
“We finally have an improving macro environment with central banks globally about to cut interest rates. As interest rates begin to fall and inflation declines, investors will take on more risk, deploy more capital into financial markets, and crypto will take center stage,” said Josh Gilbert.
Like many market commentators in recent months, Gilbert asserted that next year looks set to bring a recovery.
“2024 could be a strong year for Bitcoin and the broader cryptocurrency market. Bitcoin halving is at the heart of this theory and it is the main catalyst that bullish investors are focusing on.”
However, Tina Teng, market analyst at #CMC Markets, explains that it is too early to start worrying about whether huge profits are imminent. Instead, investors should brace for a new wave of uncertainty.
“It's too early to say this is the beginning of a bull market. This will depend on the macro environment and on whether central banks are willing to end their interest rate hike cycle to provide enough liquidity to the market,” Teng added. :
“Tight monetary policy is responsible for the decline in riskier asset classes, such as startups, small caps and cryptocurrencies. Historically, crypto market booms have occurred during Fed rate cut cycles, not spike cycles.”
Teng continued:
“Soaring government bond yields and persistent inversions of bond yields provide warning signals of economic instability ahead.”
Source: CryptoCon
Teng said that for the impending bull market thesis to be validated, Bitcoin needs to break above the 50-day moving average and catch another bull run.
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