Why the Next Crypto Bull Market Might Be Different
Concordium CEO Lars Seyer Christensen and other crypto experts are advising investors to temper their expectations for the next bull market. While Binance CEO Changpeng Zhao predicts that the industry will enter a bull market after the Bitcoin halving in 2024, Christensen takes a more cautious view.
Christensen believes that even if Bitcoin starts rising, not all digital assets will increase in value. He suggests that Ethereum and many other altcoins are unlikely to rise significantly during the next bull market. This perspective may seem bearish compared to previous bull markets, but Christensen argues that cryptocurrencies can still appeal to large investors with long-term investment plans.
When Will Bitcoin Start to Grow?
The approval of a spot Bitcoin exchange-traded fund (ETF) in the US could have an impact on crypto markets. However, it is difficult to predict whether the US Securities and Exchange Commission (SEC) will approve such applications. The next deadline for approving spot Bitcoin ETF applications is in October 2023.
Binance lawyers have recently asked courts to dismiss the SEC’s lawsuit against the exchange, arguing that the agency acted outside its jurisdiction.
Some Experts Suggest Markets Have Already Turned Bullish
Not all crypto investors agree with Christensen’s cautious outlook. Ben Simpson, founder of Collective Shift, believes that the market is already showing signs of turning bullish. He recommends investing in Bitcoin, Ethereum, and tokens with practical use cases for the upcoming bull market.
Interest Rates and Macroeconomic Situation
eToro analyst Josh Gilbert points to the recent rate hike pause by the US Federal Reserve as a positive signal for cryptocurrencies. As interest rates fall and inflation subsides, investors may direct more capital to financial markets, including cryptocurrencies.
CMC Markets analyst Tina Teng suggests that it is too early to worry about the potential for growth in the crypto market. However, investors should be prepared for more uncertainty regardless of market conditions.
Experts Are Cautiously Optimistic on Bull Market
Most analysts are cautiously optimistic about the next bull market. They believe that improvements in the global economy, driven by a reduction in interest rates, will attract investment in the crypto space and contribute to the growth of the market.
Hot Take: The Next Bull Market Requires Caution and Patience
As crypto investors anticipate the next bull market, it is important to approach it with caution and patience. While some experts predict significant growth, others advise tempering expectations. The approval of a spot Bitcoin ETF and the macroeconomic situation will play a role in shaping the future of the crypto market. Regardless of market conditions, it is crucial for investors to stay informed and prepared for uncertainty. Only time will tell when and how the next bull market will unfold.
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