The encryption market cycle has shifted permanently – the founder of the polygamy
The four -year encryption market cycle, which traders and investors used to, is no longer due to the maturity of the encryption as the class of institutional assets and participation of institutional investors, according to Polygon Sandeep Nailwal.
During a conversation episode From the reaction of the Cointelegraph series, Nailwal said that the comprehensive speculation activity has decreased due to High interest rates In the United States and low hardness conditions, but it will refresh as soon as the prices are reduced and the Trump administration stabilizes its new role.
Although the interest rates on treasury bonds for 10 years have decreased significantly, the prices are still relatively high. source: Tradingvief
Nailwal added that while a 30-40 % decreases are expected between the courses and the bitcoin still expects (BTCThe half to have some effect on the markets, The four -year cycle is now less clear. Nailwal said:
“We have generally seen 90 % clouds between the courses, which is very normal in encryption. I feel that these withdrawals will be less clear and will feel more professional and more mature, especially for the origins of blue chips.”
The founder of Polygon concluded that once the upward trend resumed and the encryption markets suffer from the operation of a long bull, the capital will rotate from large CAP assets to smaller CAP assets.
Related to: BTC is steadily dominating since 2023, is Altseass now residue?
Other disturbances in a four -year cycle
US President Donald Trump has commanded the executive executive Create a bitcoin strategic reserve It is one of the factors that the market analysts say it distorts the market cycle for a period of four years.
The pro -Carbuto policies from the Trump administration have also begun in the eyes of institutional investors, which should bring new capital flows and reduce digital asset fluctuation.
It flows to the investment funds circulating in Crypto for the week from March 21. Source: Coinshares
The appearance of the exchange funds (ETFS) The course malfunction for four years By supporting the prices of digital assets that contain the traded investment funds and capital cut in those investment vehicles.
Since the circulating investment funds are traditional financing products that do not grant basic digital asset holders, these investment compounds prevent capital from alternating freely to other assets.
Also, the pressure of the macroeconomic and the geopolitical certainty has an annoying impact on the market cycles, such as Investors escape assets on risk For more stable alternatives such as money and government securities.
magazine: Bitcoin will start with “tearing” with Trump’s improvement: Felix Hartmann, X Hall of Flame.
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