The forthcoming crypto bull run is poised to diverge significantly from its predecessor, and investors should exercise restraint in their anticipations of an imminent surge in cryptocurrency prices, according to Lars Seier Christensen, the founder of enterprise blockchain company Concordium, in a recent interview with Cointelegraph.
Despite the prevailing optimism in the crypto market surrounding the multitude of proposed spot Bitcoin (BTC) exchange-traded funds (ETFs), Christensen remains skeptical about their immediate impact on crypto markets.
He emphasizes that even if a Bitcoin rally does materialize, it does not guarantee a simultaneous surge in all crypto assets.
Christensen suggests that older altcoins like Ethereum may not experience a similar rally, contrary to expectations.
While digital asset prices have experienced a slump over the past 18 months, there remains an unwavering corporate interest in blockchain technology.
Consequently, Christensen envisions the next phase of industry growth to be marked by gradual, steady progress rather than the explosive price surges seen in 2021.
He notes that corporate entities require cryptocurrencies primarily for executing activities on specific blockchains, rather than solely for speculative gains.
However, not everyone shares Christensen’s perspective.
Ben Simpson, the founder of crypto education platform Collective Shift, argues that various data and indicators suggest the early stages of a Bitcoin bull market.
He points to metrics like the drawdown from the all-time high chart and market-value-to-realized-value ratio, which often precede bull markets.
Simpson identifies Bitcoin, Ether (ETH), and application-specific tokens, particularly those related to gaming, as assets poised for significant growth.
He also mentions DeFi tokens as offering substantial upside potential.
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The crypto industry has faced challenges in recent years, including a more hawkish Federal Reserve and the high-profile collapses of platforms like FTX and Celsius Network, resulting in decreased investments and falling crypto asset prices.
However, eToro Markets analyst Josh Gilbert is optimistic, anticipating a resurgence in the crypto market as central banks worldwide consider lowering interest rates.
Looking ahead, 2024 appears promising for Bitcoin and the broader crypto market, driven in part by the Bitcoin halving event.
Still, market analyst Tina Teng from CMC Markets advises caution, emphasizing the need for a conducive macroeconomic environment and central banks’ willingness to provide liquidity to markets for a true bull market to emerge.
Teng points out that the previous crypto market boom coincided with the Fed’s rate cut cycle rather than a rate hike cycle.
She underscores the significance of Bitcoin breaking through the 50-day moving average for a new bull market thesis to gain validation.
Teng concludes by highlighting ongoing concerns related to government bond yields and inverted bond yields, signaling economic uncertainty.
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