Next bull run will be slower, less volatile as investors' crypto appetite evolves, Bitwise CIO says
Key takeaways
- I have less certainty around how, when or if it has bottomed.
- With multiple, often conflicting, signals identifying where the slide in bitcoin might end, the price remains almost 50% below the record high it hit in October.
- Interest in stablecoins is also growing, and the combined market value of the tokens, whose value is pegged to a real-world asset like the dollar, recently hit a record high $322 billion.
I have less certainty around how, when or if it has bottomed. I think we have to wait to see how the four-year cycle plays out.”
With multiple, often conflicting, signals identifying where the slide in bitcoin might end, the price remains almost 50% below the record high it hit in October. It's down 26% this year, and the broader market gauge CoinDesk 20 Index (CD20) has lost 34%. Blockchains associated with tokenization, such as Stellar, have also been hit, though Stellar's lumen (XLM) coin stands out with a gain of 8.9% this year.
Interest in stablecoins is also growing, and the combined market value of the tokens, whose value is pegged to a real-world asset like the dollar, recently hit a record high $322 billion. That's more than the foreign exchange reserves of 95 countries, including several developed nations. The value could peak at $4 trillion by 2030, according to Citi projections.