Four-year Bitcoin (BTCAccording to Seamus Rocca, CEO of Xapo Bank, the market cycle that forms new highs and then deep corrections, is still alive.
The CEO of Cointelegraph said in an interview that there is a risk associated with a prolonged bear market This is still very true and doesn’t need to be a “cataclysmic” It can be triggered by an event. Simple things like a slowdown of news or developments, routine portfolio rebalancing, and a general slowed down in the market could trigger upcoming global decline. He continued:
“We all want to think that Bitcoin is an inflation hedge, and I believe that it will be that inflation hedge one day. But I’m not sure we’re there yet. I still see it very much as a risk-on asset. At least that correlation between Bitcoin, the S&P, and stocks is still very much there.”
“The contagion effect could be as simple as there’s no new news in the market,” Crypto sector is causing a disruption “run out of steam,” In an organic and long-drawn out process, the CEO explained.
Bitcoin traders, crypto analysts, and industry executives say The word “that” is a phrase that means, “that which”. four-year market cycle is dead Or has moved to the point that sharp, prolonged cyclical corrections The presence of institutional investors and the maturity of the crypto asset class has made it unlikely that this will happen.
The market’s historical trend will not be saved by institutional buying
“So many people are saying, ‘Oh, the institutions are here, and, therefore, the cyclical sort of nature of Bitcoin is dead.’ I’m not sure I agree with that,” Seamus Rocca told Cointelegraph.
Others in the industry have echoed this CEO perspective. including Matthew Kratter is a Bitcoin expert and analyst, and the author of “The Bushido of Bitcoin,” Aleksandar Svetski.
“Human psychology will never change. Cycles have nothing to do with Bitcoin and everything to do with people. The same boom and crash will happen this time,” Svetski written in a 15 June X post.
Other firms, such as venture capital firm Breed warn The risk of overleveraging Bitcoin Treasury companies spark the next bear market.
The analysts of the VC firm said, however, that contagion could be contained if the majority of these treasury businesses continue to finance the purchase primarily via equity instead.
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Source: cointelegraph.com
