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The long-term fundamentals of the crypto market look promising, despite the October and November turmoil that left asset prices and investor sentiment to crater, according to Hunter Horsley, CEO of investment firm Bitwise.
Horsley said four-year market cycle is deadreplaced by a more mature and dynamic market structure changed due to the pro-crypto regulatory pivot in the United States. He said on a Friday X place: :
“Since the launch of the Bitcoin ETF and the new administration, we have entered a new market structure: new actors, new dynamics, new reasons that people buy and sell.
I think there’s a pretty good chance we’ve been in a bear market for almost 6 months and I’m almost through it. The setup for crypto right now has never been stronger,” Horsely added.
His comments offer a counter view to crypto investor sentiment, which it fell to its lowest level since Februaryas asset prices remain well below 2024 highs and fear grips the market.
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Sentiment craters on ‘extreme fear’ as analysts project where prices are headed
The “Crypto Fear and Greed Index,” a metric that measures investor sentiment, is at 16 at the time of writing, signaling “extreme fear.” according to at CoinMarketCap.
Nuc Puckrin, market analyst and founder of CoinBureau he said that despite the 25% dip is the drop of the lowest correction level during this cyclecompared to previous dips of more than 30%, investor sentiment is still cratered.
The price of Bitcoin (BTC) it fell to a six-month low of $94,590 on Friday, challenging analyst projections further downside at the $86,000 level.
Investor and financial educator Robert Kiyosaki to blame the fall of the crypto market low levels of liquidity and said that the prices of cryptos and precious metals will rise once the government resorts to printing more money to finance budget deficits.
Liquidity tends to drive asset prices; high liquidity from low interest rates and the expansion of the money supply pushes up prices, and lower liquidity and constrained credit tend to lower asset prices or cause markets to stagnate.
Although the Federal Reserve of the United States has started slashing interest rates, only approx 44% of traders expect a rate cut in December, second data from the Chicago Mercantile Exchange (CME).
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