The purpose of this text is to provide you with my point of view. This is in no way investment advice.
The crypto-asset market is currently in an expansion phase, with the first bullish leg kicking off on December 16, 2020 when the Bitcoin price surpassed its previous record high. Since then, the market has been in the spotlight, rising from a total capitalization of $1,000 billion at the beginning of January to almost $2,000 billion today.
In just 3 months, the crypto-asset market has doubled in size, whereas it had taken 12 years to reach its first $1,000 billion.
This first bullish leg ended at the end of February 2021. Since then, we've been in a range (horizontal channel, price stabilization). A second uptrend seems possible from April onwards.
This second leg of the bull market will probably be the last for this cycle. We will then enter a phase of distribution and capitulation (bear market).
We will never be able to predict when the market will change state, but indicators suggest a range between August and December 2021.
This cycle repeats itself every 4 years and appears to be like clockwork. However, we can see that the crypto-asset market has greatly matured and changed hands. Institutional investors are now on board, having entered the market at around $30,000 per Bitcoin and then at around $50,000 per Bitcoin.
Given the massive influx of institutional capital, which today represents nearly 6.77 % of market capitalization, we can say that professional investors are now present and that this bull market will not be the same as 2017.
Like some JP Morgan experts think soThis will also reduce the well-known volatility of crypto-assets, particularly Bitcoin.
The more mature the market and the larger the capital, the lower the volatility.
Today, the trend is towards NFT (Non Fungible Token). This is a special type of cryptographic token which represents something unique. These non-fungible tokens are therefore not interchangeable.
Thanks to this type of token, we can see Art appearing in the digital world of blockchains, but there are also many other use cases.
If you have any questions, comments or would like to find out more about our service, please do not hesitate to contact us: crypto.assets.manage@gmail.com
- Warning -
This is not investment advice. No one can predict the future.
You are solely responsible for your own investment decisions.
We are not responsible for any loss resulting from a decision taken on the basis of the information in this letter.