Bullish statement from famous founder: “As of today, the current cryptocurrency bear market is over”

Arthur Cheong, founder of crypto investment firm DeFiance Capital, announced the official end of the 2022-2023 crypto bear market in an analysis published on Twitter on July 14, 2023.

Cheong cited six reasons for the bullish outlook for the cryptocurrency market, ranging from macroeconomic factors to regulatory developments to market sentiment.

• First, he believes that the worst of macro tightening is over as consumer price index (CPI) data has plummeted and real interest rates are now positive. He predicts that there is a greater chance of a rate cut next year than there is no rate cut, which will increase demand for crypto assets.

• Secondly, he pointed to the continued institutional acceptance of cryptocurrencies as an asset class, based on BlackRock’s application for a Bitcoin exchange-traded fund (ETF) in June 2023. He said this will pave the way for more mainstream investors to enter the cryptocurrency space.

• Third, he claimed that the chances of the SEC labeling all tokens as securities are now significantly weakened after the SEC lost part of its lawsuit against Ripple Labs regarding the XRP token. He said this was a landmark decision that would reduce regulatory uncertainty and risk for cryptocurrency investors.

• Fourth, he observed that most retail investors or small investors have exited the market, and those who are still in the market will not sell in the short term, except for some currencies with obvious unlocking plans. He said this shows the firm belief and resilience of cryptocurrency holders.

• In the fifth article, he noted that the market has very little attention for non-Bitcoin and non-Ethereum tokens, and that there is still a lot of work to do to catch up. He said this could bring opportunities for diversification and growth in the cryptocurrency market.

• Finally, he stressed that Hong Kong’s tolerant stance towards cryptocurrencies is genuine and will pave the way for Asian financial institutions to legally participate in cryptocurrencies, which he said will increase liquidity and cryptocurrency adoption in the region.