Investors should temper their expectations of an impending spike in crypto prices because the upcoming bull run will not resemble the previous one in any way.
At least that is what Concordium’s founder, Lars Seier Christensen, stated in a recent interview.
Christiensen is skeptical that the approval of the multitude of proposed spot Bitcoin exchange-traded funds will have a significant immediate impact on the cryptocurrency markets, even though the majority of the market is enthusiastic about them.
Even if there is a Bitcoin rally, He doesn’t think we should automatically assume that everything else will also rally.
Does that inherently imply that Ethereum and many of the more established altcoins will gain value as a result as well? He believes that won’t happen with almost absolute certainty, he added.
According to Christiensen, while the price of digital assets has decreased over the past 18 months, interest in blockchain technology from the business side has not diminished.
This indicates that the next significant development for the sector won’t be symbolized by a particularly “sexy” rally, when prices of crypto assets soar like they did in 2021, but rather by a more modest expansion that will happen gradually over the following 18 months, noting:
The sole purpose of a crypto asset for business types is to enable them to carry out their desired actions on a specific blockchain. So it’s very evident that you need to be aware that they are not pressing for a certain cryptocurrency to greatly increase in value.
But not everyone would tend to concur with Christensen.
We may already be in the early stages of a Bitcoin bull market, based on a multitude of data and signs, according to Ben Simpson, the founder of the crypto teaching portal Collective Shift.
According to Simpson, the market value to realized value ratio (MVRV) and the drawdown from the All-Time High chart indicate that we are in the final phases of accumulation, which is frequently a sign of a coming bull market.
Simpson thinks that Bitcoin, Ether ETH, application-specific tokens, and industries like gaming are the assets most poised for a significant growth during the upcoming bull market.
Bitcoin, which he anticipates emerges as the “silent winner” amid greater acceptance, is the cryptocurrency he is most optimistic about. DeFi tokens are risky but offer substantial upside.
The crypto sector has had a difficult two-year period. The amount of investment in the sector has decreased, which has led to a decline in the price of crypto assets. This decline has been attributed to a federal reserve that is becoming more hawkish and a series of high-profile collapses, including those at FTX and Celsius Network.
The U.S. Federal Reserve decided earlier this week to put on hold any interest rate increases, therefore eToro Markets analyst Josh Gilbert is upbeat about the macroeconomic picture as a whole.
With rate decreases anticipated from central banks around the world, the macroeconomic outlook is finally improving. Investors would take on greater risk and spend more money into financial markets as rates start to drop and inflation declines, he predicted, and cryptocurrencies will be prominent.
Gilbert stated that a rally next year appears to be in the cards, echoing the sentiment of many market analysts in recent months.
For Bitcoin and the larger crypto sector, 2024 may be a successful year. The core idea of this hypothesis is the halving of the price of bitcoin, which is the main motivator for hopeful investors.
Tina Teng, a market analyst with CMC Markets, argued that it is, nevertheless, way too early to begin worrying about the possibility of significant gains in the near future. Instead, investors need to prepare for another round of uncertainty.
It’s too soon to declare that a bull market in cryptocurrencies has begun. According to Teng, this would rely on the overall economic situation and depend on whether or not central banks would be willing to stop raising interest rates in order to supply the markets with adequate liquidity.
Monetary policy tightening is responsible for the drop in riskier asset classes such as startups, small caps, and cryptocurrencies. Historically, the bitcoin market boomed during the Fed’s rate-cutting cycle, not during the Fed’s rate-hiking cycle.
Government bond rates are skyrocketing, and inverted bond yields are flashing warning signs of impending economic turmoil.
Teng believes that in order for an approaching bull market thesis to be proven, Bitcoin must break through the 50-day moving average and ride another surge ahead.