The next cryptocurrency bull market will be the largest ever, a fund strategist predicts
Matt Hougan, a chief investment officer of the Bitwise Investments crypto fund, is positive on the market.
In a letter to investors, Hougan asserts that the cryptocurrency market is “ideally positioned to stage a rebound” and is on the verge of a record-breaking bullish cycle.
“However, we think crypto will rebound in the end. Historically, cryptocurrencies have recovered from every significant decline. We do not believe that this will be different.
In fact, we believe that the next crypto bull market will be the largest ever, with new all-time highs and a surge of innovative applications that influence mainstream acceptance.”
According to Hougan, development and innovation in the cryptocurrency business are among the reasons for optimism.
We are optimistic due to technological blockchain advancements like Ethereum’s Merge, scalability breakthroughs such as the emergence of Layer-2 solutions, and a simmering pot of emergent new applications.
However, the CIO of Bitwise predicts that the cryptocurrency industry will have a U-shaped or protracted recovery rather than a rapid or V-shaped one.
“We anticipate a period of sideways trading before the market enters its next positive phase. There is a significant danger of another leg down, triggered by another crypto firm collapse, token explosion, or regulatory action.”
According to Hougan, recuperation won’t be easy. “Recovery will not be simple, though. The fraud-ridden downfall of FTX and the larger crypto credit crisis cast a lengthy, dark shadow on the domain. Regulators are on the hunt, banking relationships are breaking, and investors are suspicious.
In addition, fresh concerns, such as the scheduled release of 127,000 bitcoin from the Mt. Gox settlement later this year, and turmoil in the bitcoin mining industry, are on the horizon.”