Bitcoin ETFs or not, don’t expect a ‘sexy’ crypto bull run — Concordium founder
The next crypto bull run will likely not resemble the previous one, according to Lars Seier Christensen, founder of enterprise blockchain Concordium. Christensen believes that investors should temper their expectations of an imminent surge in cryptocurrency prices, even with the potential approval of spot Bitcoin exchange-traded funds (ETFs). He argues that not all cryptocurrencies will rally together and that older altcoins may not experience the same price increase as Bitcoin.
Christensen notes that while digital asset prices have dampened over the past 18 months, there is still significant interest in blockchain technology from the corporate side. He suggests that the growth of the industry may be more subdued, happening gradually over the next 18 months.
Not everyone agrees with Christensen’s perspective. Ben Simpson, founder of crypto education platform Collective Shift, believes that indicators suggest we are already in the initial stages of a Bitcoin bull market. Simpson predicts that Bitcoin, Ether, and application-specific tokens and sectors such as gaming will experience significant growth. He also believes that decentralized finance (DeFi) tokens, despite being risky, offer significant upside potential.
The crypto industry has faced challenges in the past two years, including an increasingly hawkish Federal Reserve and high-profile collapses of companies like FTX and Celsius Network. However, with the Federal Reserve recently pausing interest rate hikes and an improving macro environment, some analysts are optimistic about the future of the crypto market. Josh Gilbert, an analyst at eToro Markets, believes that as rates fall and inflation subsides, investors will take on more risk and invest more capital into financial markets, including crypto.
Tina Teng, a market analyst from CMC Markets, cautions that it is too early to predict whether massive gains are on the horizon. She suggests that investors should prepare for uncertainty and that the start of a bull market in crypto would depend on the macro environment and the actions of central banks.
In conclusion, while some experts believe that a bull market is on the horizon for cryptocurrencies, others believe that a more subdued and gradual growth is to be expected. Investors should manage their expectations and brace themselves for potential uncertainty in the market.
