The co-founder and chief investment officer of digital asset investment firm Blocktower Capital says conditions are ripe for cryptocurrencies to continue their upward trend in the medium term.
Ari Paul points out on Media Platform
BlockTower Capital executives highlight Currently, cryptocurrencies show no signs of heightened hype or speculation, suggesting the market is positioned for continued bullishness.
“On the ‘unusual’ side of cryptocurrencies, we see very low leverage levels, neutral sentiment, and healthy market positioning.
I think pattern matching of past events like the approval of ETFs (exchange traded funds) and futures listings in 2017 is a bad analogy. All of these similar events occurred much later in the bull cycle, in a context of bullish influence and hype. In my opinion, we are currently in a bullish trend with a medium time frame and the price is likely to rise within six months. ”
Considering the fundamental economics of cryptocurrencies, Paul says: To tell Demand from institutional investors and new users is more than enough to swallow up the supply coming into the market.
“We are currently in a market trend where institutional adoption and new user onboarding are slow. There are also daily outflows due to mining, exchange fees, hacking, etc.
All the “overhangs” I know about for BTC and ETH are fairly mild (such as Celsius ETH holdings being liquidated). I think it's very likely that demand will continue to be as overwhelming as it has been over the past 12 months. Something like Solana is probably more difficult given how much FTX real estate has to liquidate. ”
According to Paul, cryptocurrencies are currently Continue He believes insiders and financial institutions are stocking up on digital assets before they cause a big rally, and believes we are seeing a bull market cycle that is typically seen in stocks and bonds.
“What I am saying is that bull cycles follow a common pattern: starting with insider buying, then institutional investors, then retail. Based on capital flows and adoption metrics, we are institutionally I think we are in the early to mid-innings of a 9-inning bull cycle. So, barring a 'shock', we expect to be able to get through the next 5 innings of the bull cycle.”
Paul too To tell He said that a new catalyst is not necessarily needed for cryptocurrencies to continue rising, and that the current upward trend is enough to encourage further gains.
“From a technical analysis perspective, we are in a bullish trend on a medium time frame, so if our assessment of the current trend is correct, we do not need a catalyst.
It's a bit like gravity in Einstein's formula. In the absence of a force, the natural path for an object is to follow a curved space-time. If you are in a bullish or bearish trend in the market, your best bet is for the trend to continue for at least the next incremental time unit in the absence of a catalyst. ”
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Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should perform due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that transfers and transactions are made at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets. The Daily Hodl is also not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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