Don't Expect Everything to Rally with Bitcoin
The next crypto bull run will look nothing like the last one and investors should tame their expectations of an imminent rocketing of cryptocurrency prices. Lars Seier Christensen, the founder of enterprise blockchain Concordium, expressed doubt that the approval of proposed spot Bitcoin exchange-traded funds will immediately drive the crypto markets. Christensen believes that even if there is a Bitcoin rally, it does not necessarily mean that other cryptocurrencies like Ethereum and older altcoins will rally as well.
A Gradual Growth, Not a Sexy Rally
Contrary to the expectation of a sexy rally leading to soaring prices of crypto assets, Christensen predicts a more subdued growth that will occur gradually over the next 18 months. He highlights that corporate interest in blockchain technology remains strong, but it does not rely on a significant increase in the value of cryptocurrencies. According to Christensen, corporate types mainly need crypto assets to execute their operations on a blockchain.
Crypto Bull Market in the Making?
Not everyone agrees with Christensen's cautious view. Ben Simpson, the founder of crypto education platform Collective Shift, believes that several indicators suggest the initial stages of a Bitcoin bull market. Simpson expects Bitcoin, Ether, and application-specific tokens and sectors like gaming to experience a major boom in the next bull market. While he acknowledges that DeFi tokens are risky, Simpson is optimistic about Bitcoin's prospects amid broader adoption.
A Tough Period for the Crypto Industry
Over the past two years, the crypto industry has faced challenges, including the impact of an increasingly hawkish Federal Reserve and high-profile collapses of platforms like FTX and Celsius Network. These factors have led to a decline in investment and a decrease in crypto asset prices. However, with the Federal Reserve pausing interest rate hikes, some analysts foresee an improving macro environment that could drive more capital into financial markets, including crypto.
2024: The Year for Bitcoin and Crypto?
Many market commentators, including eToro Markets analyst Josh Gilbert, believe that next year could be a strong year for Bitcoin and the broader crypto market. Gilbert emphasizes the upcoming bitcoin halving as the major catalyst for optimistic investors. However, market analyst Tina Teng from CMC Markets urges caution and suggests that it is too early to predict massive gains. Teng believes that the start of a bull market in crypto depends on the macro environment and the willingness of central banks to provide liquidity.
Bitcoin Needs to Break Through Moving Average for Bull Market Validation
Teng explains that for the thesis of an imminent bull market to be validated, Bitcoin needs to break through the 50-day moving average and experience another surge upwards. This breakthrough would confirm the beginning of a bull market in the crypto industry.
