Trading veteran: Bitcoin is maturing, no more extreme declines

Arthur Chong, a veteran of the crypto world, believes that the years of extremely deep declines are a thing of the past for Bitcoin. He expects Bitcoin and crypto to behave more like the stock market in the future.

The coming of age of Bitcoin

“Nuanced view: it is possible that the crypto market is maturing and that we will no longer see wild drops of 70-80% every two years. Instead, we get a growth path like that of the S&P 500 after the 2008 global financial crisis.

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Aside from the COVID-19 crash of 2020, the US stock market is in a bullish range and every bear calling for a massive crash has been wrong. However, what is also striking is that returns are becoming increasingly concentrated in a few large stocks,” says Cheong.

If his theory plays out, he expects that we will no longer see bull markets from the past. He is less enthusiastic about altcoins in particular. He expects, just like in the stock market, that it will mainly be the big boys within crypto that will attract the returns.

Cheong therefore seems mainly bullish about Bitcoin and is less interested in altcoins, which he believes must now really choose their own path.

Altcoins must choose their own path

To be successful, it is important for altcoins to take their own path, Cheong is convinced.

Fortunately, he expects an improvement in the market for Bitcoin and the rest of crypto in the near future. In particular, he believes Bitcoin and Ethereum are undervalued because they are the only two digital assets that are no longer in trouble with lawmakers.

“I think the market still hasn’t priced in the fact that Bitcoin and Ethereum are the only two digital assets with certainty about their legal status,” Cheong said.

That conclusion came last week, after Consensys announced that the US Securities and Exchange Commission (SEC) is dropping its lawsuit against Ethereum. That essentially means that Ethereum now qualifies as a digital commodity in the United States.

This, according to Cheong, virtually guarantees the continued existence of Ethereum. In theory, that would also pave the way for investments from serious parties, who always want to wait and see about these kinds of things.

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