Co-founder of the venture capital company Mechanism Capital, Andrew Kang, shared his thoughts on the cryptocurrency market. 📈 He noted that for many investors this is the first full bull market. During this market, Bitcoin's multi-day decline was relatively minor, capped at 20%, and many investors increased their holdings during the last market correction in April.

However, in the previous cycle, the market was frequently subject to deleveraging, leading to pullbacks of 30-60% and losses of hundreds of billions of dollars. Kang emphasized that each cycle follows different paradigms. When investors become overconfident and believe that certain events are impossible, this is often the point when unexpected setbacks occur.

The market now reminds me of May 2021, not June 2021 or December 2020. Investors were accustomed to constant price increases, each drop was quickly recovered. However, after the correction from $64,000 to $45,000, many investors bought in anticipation of a quick recovery. Instead, the market fell even lower despite expectations that more retail investors would enter, seeing $40,000 as a strong support level.

Kang indicated that current market conditions are more similar to those in May 2021. This time the focus is on Ethereum-traded funds, with prominent traders predicting high prices. He agrees with GCR on the multi-year time frame, expecting new highs for Bitcoin in 2025. However, he cautioned that not all altcoins will achieve the same growth. Kang also stressed that the market could still undergo significant corrections within a few months.

At the time of writing, Bitcoin is trading at $62,303, reflecting a decline of more than 3.19% over the past 24 hours, according to data from CoinMarketCap. This significant drop caused significant bearish sentiment throughout the market. Meanwhile, Bitcoin's market dominance currently stands at 54.17%, marking a slight increase of 0.19% from the previous day. 📉