Flashback to the Early 1900s: A Look at the Analyst’s Insights
A freelance blockchain strategist and former crypto market analyst at Bloomberg Intelligence believes today’s crypto market mirrors the growth of the U.S. stock market of the early 1900s.
What the Analyst Thinks About the Crypto Market
The analyst predicts a trajectory of ascendancy similar to what the U.S. stock market once experienced, especially with the anticipated introduction of Exchange-Traded Funds (ETFs).
He likens the current dynamics of the crypto markets to the pre-1933 and 1934 era of the U.S. stock market, characterized by loose regulations, market fragmentation, dominance by large investors, and information asymmetry.
Recognizing the momentum-driven nature of the crypto market, the strategist suggests it is well-suited for exploiting technical trend strategies.
Market inefficiencies in the crypto space are believed to offer significant potential for extracting alpha and the push for alternative weighting, factor-based, and market-timing strategies in the near future.
A Look at Two Prominent Blockchain Platforms
The analyst also looked into two prominent blockchain platforms, Solana (SOL) and Cardano (ADA), and found significant disparities in their market caps and user activities.
Cardano ranks 7th with a market cap of $17.73 billion and ADA ranked 9th at $12.78 billion, but he pointed out that, despite Cardano’s market cap being 75% of Solana’s, it only boasts 16% of Solana’s daily user base.
This disparity suggests the potential for Solana’s market share to grow if it continues to outpace Cardano in user engagement, indicating that Solana might see more valuation growth than Cardano, considering their current user metrics.
The wider cryptocurrency market focusing on Bitcoin’s performance was also discussed by the analyst.
The Crypto Market and Bitcoin’s Performance
Bitcoin has witnessed a strong trend of ‘firm hands’ in the market and the count of such Bitcoin addresses has hit a record high of 844,000, holding over 3 million BTC, interpreted as a sign of a robust HODLing sentiment.
Coutts analyzed Bitcoin’s holding patterns and the market forces affecting its price, especially potential new investments from developers and the crypto community.
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