Bitcoin 4-year (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 It is very much real, and it does not require a “cataclysmic” An event can trigger the next market-wide downturn. Even simple things such as the slowing down of all news and developments or a routine portfolio rebalancing can cause a market wide 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,” The crypto industry is growing. “run out of steam,” In an organic, long-drawn-out process.
Bitcoin traders, crypto analysts, and industry executives say The word “that” is a phrase that means, “that which”. four-year market cycle is dead The point at which 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.
Markets won’t be saved from their historical trend by Institutional buyers
“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.
Other industry leaders have shared the CEO’s view. including Matthew Kratter an expert Bitcoin teacher 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 had written in a 15 June X post.
Some, like the venture capitalist firm Breed. warn The risk of overleveraged Bitcoin Treasuries spark the next bear market.
Analysts at the VC company also stated that there may not be a large spread if these treasury firms continue to fund their Bitcoin purchases primarily with equity and less through debt.
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Source: cointelegraph.com
