It isn’t a secret that the fundamentals of the cryptocurrency space are looking rather hot. Spencer Bogart of Blockchain Capital told Bloomberg TV that this nascent space is still rife with innovation, talent, and capital. The prominent crypto investor explained that the levels of entrepreneurial talent and institutional interest hasn’t ceded with the Bitcoin price, leading him to determine that this ecosystem is far from dead in the water.
Dan Held, the co-founder of Interchange and a former product manager at Blockchain.com, has also expressed optimism, noting that he’s more bullish on Bitcoin than ever before.
I'm more bullish than ever on Bitcoin:
– Bitcoin market cap is smaller than Starbucks – Less than 0.1% of the world owns Bitcoin – 441 days until halvening – Bitcoin ETF coming by late 2020 – Record government debt – Institutional plumbing is being built
He laid out six points to back his comment on Twitter: Starbucks’ public valuation is higher than BTC, less than 0.1% of the world’s population is involved in Bitcoin, the halvening is under 450 days away, a crypto-backed exchange-traded fund (ETF) could arrive by late-2020, government debt swells, and the “institutional plumbing is being built.” Held’s remarks come after prominent trader The Crypto Dog released a similar list of things to be bullish about just days ago.
While all these developments have continued to bless the industry, prices have seemingly failed to react. In fact, since the lows established in mid-December, the aggregate value of all cryptocurrencies has only moved from $102 billion to $135 billion. Although a 30% gain within three months is impressive in any other market, investors have deemed this performance lackluster at best.
Market Continues To Trade Flat
The team at Pantera Capital put this underlying market theme best in a recent letter. Per previous reports from Ethereum World News, the blockchain-centric venture group stated:
We have been surprised to see how far prices have deviated from the underlying fundamentals — which are stronger now than ever.
But why are prices barely moving, in spite of the news?
Well, the answer may be quite simple. Many have looked to the “Wall Street Cheat Sheet — Psychology of a Market Cycle” for an answer. The chart dictates that following capitulation, recently exemplified when Crypto Yoda left the space, markets enter a stage of anger, desperation/depression, and then disbelief.
Pundits claim that we are in the later phase, as many are sure that lower lows are inbound, and that the development of the crypto industry in recent weeks is just white noise, so to speak. The Crypto Dog, a prominent Bitcoin trader, touched on this himself recently, noting that while sentiment is more bullish than bearish, a fleeting feeling of an impending collapse still sits at the back of his mind — a likely sign of a market phase of “disbelief.”
Yet at the same time, we've been so strongly conditioned to expect a rug pull at any moment with this sentiment in the air.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
Title Image Courtesy of Patrick Tomasso Via Unsplash