The long-term fundamentals of crypto remain strong, the 4-year cycle has "died" — CEO of Bitwise

According to Hunter Horsley, CEO of the investment firm Bitwise, the long term fundamentals of the crypto market remain very promising, even though in the past two months of October and November, asset prices have fallen sharply and investor sentiment has plummeted.

Horsley stated that the 4-year market cycle is “dead,” giving way to a more mature market structure with new dynamics, thanks to the shift in crypto-friendly policies in the U.S. He wrote on X on Friday:

“Since the launch of Bitcoin ETF funds and the new government taking power, we have entered a completely new market structure: new players, new dynamics, new reasons to buy and sell.”

I think it is very likely that we have gone through nearly 6 months of a bear market and are about to end it. Currently, the setup for crypto has never been stronger than it is now," Horsley emphasized.

His assessment contrasts with the sentiment of the crypto market, which is currently at its lowest level since February, with asset prices still far from the 2024 peak and fear overwhelming the market.

Hunter Horsley## Investor sentiment falls into “extreme fear”

The “Fear and Greed Index,” a measure of investor sentiment, is at 16, reflecting a state of “extreme fear,” according to CoinMarketCap.

The Cryptocurrency Fear and Greed Index has fallen to 16, signaling “extreme fear” among cryptocurrency investors | Source: CoinMarketCapMarket analyst and founder of CoinBureau, Nuc Puckrin, stated that although the 25% drop is the lowest correction in this cycle ( compared to previous drops over 30%), investor sentiment has still been “smashed.”

The price of Bitcoin fell to a 6-month low, hitting $94,590 on Friday, causing analysts to forecast that the price could further decline to the $86,000 range.

Investor and financial educator Robert Kiyosaki believes that the recent downturn in the crypto market is due to low liquidity. He predicts that crypto prices and precious metals will rise again as the government continues to print money to cover budget deficits.

Liquidity is often a key factor in determining asset prices: high liquidity due to low interest rates and an expansion of the money supply drives prices up, while low liquidity and constrained credit lead to price falls or a sideways market.

Although the Federal Reserve (Fed) has started to lower interest rates, only about 44% of traders predict that the Fed will continue to cut in December, according to data from the Chicago Mercantile Exchange (CME).

Thạch Sanh