Economist Alex Krueger says bitcoin (BTC) and cryptocurrencies are in a supercycle, and expects this phase of the market to be more than just a meme.
In a new discussion on A blocmates Orange podcast, Krueger says Wall Street and the traditional financial community have "fundamentally" changed the structure of the digital asset market.
Krueger says that because of the new nature of the #cryptocurrency market, Wall Street will be forced to increase its stake in digital assets, so downside volatility will be much more limited and buying pressure will increase significantly.
We are now in what we think of as a supercycle.
This term was often used as a #meme in the cryptocurrency industry. Unfortunately, it turned out to be a meme as #bitcoin fell 86% from the top to the bottom between 2021 and 2022.
But what a supercycle essentially means is not that the bears are gone or that there will be no more correction and it will rise, but that the coming correction will be shallow. It means that instead of a 6% correction, there will be a 20% correction, at worst a 50% correction, and at the very worst a 60% correction.
the main reason for this change is that the market structure has changed dramatically with the advent of Wall Street and the introduction of exchange traded funds (ETFs).
And now there is a point where people should have more bitcoin in their portfolios. Why should they do that? Because bitcoin is being promoted by asset managers, RIAs (registered investment advisors) and a lot of people on Wall Street. Currently, the share of bitcoin is very small, both in general and in portfolios.
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