Veteran cryptocurrency investor Arthur Cheong believes that deep declines and multi-year bear markets may be a thing of the past for digital assets.
The CEO of DeFiance Capital says According to its 169,400 followers on social media platform
“Nuated take: It is very possible that the cryptocurrency market is maturing and we will not see wild and complex swings with a 70-80% drawdown every two years, but rather complex secular growth like the S&P 500 experienced after the GFC (Great Financial Crisis) of 2008. ).
Excluding the Covid-19 crash in 2020, the US stock market was range bound or gradually crashing, where all the bears calling for a major drop turned out to be wrong, but the returns are also becoming more concentrated. more in large and mega caps, while value and small caps remain underappreciated for a long time."
Cheong says that if his thesis holds true, future bull markets will no longer serve as a tide that lifts all boats, suggesting that most altcoins will not witness massive rallies similar to those seen in previous cycles.
"If similar things happen, most alternatives are uninvestable, but some winners will generate impressive returns and hopefully we will get an Nvidia-like result every few years, while most alternatives will disappoint."
The experienced cryptocurrency investor too grades that altcoins will have to forge their own paths if they want to succeed.
“Also, you cannot ignore the fact that the market is path-dependent, there is nothing predetermined. If mass adoption happens like Telegram brings half of its user base to TON, how much do you think TON will be worth?
But for now, Cheong think that market conditions are about to improve for cryptocurrencies. He too believe how much Bitcoin (btc) and Ethereum (ETH) are undervalued considering they are the only two digital assets without regulatory restrictions.
“I think the market has not yet appreciated the fact that BTC and ETH are the only two cryptocurrencies that have no uncertainty about their regulatory status and attract TradFi demand.”
Last week, blockchain development company Consensys Announced The US Securities and Exchange Commission (SEC) concluded its Ethereum 2.0 investigation, which sought to determine whether the second-largest cryptocurrency by market capitalization is a security.
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Disclaimer: The opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and trading are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is it an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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