Bitcoin Nieuws | Crypto centrum

Are people ‘underestimating’ this about Bitcoin and Ethereum?

The ongoing market correction has changed a lot of perspectives in the community about cryptocurrency. Consider this, in April and May, BTC and ETH saw a 60% drawdown in their prices, while DeFi assets saw a 70% decline. So, many retail traders have started asking the question – is this the end of the bull run? Will it hit those bullish price predictions projected by various analysts?
Vance Spencer, co-founder of investment firm Framework Ventures was quick to acknowledge this and stated:
“NO, I don’t think this is the end of the bull run. I actually have trouble defining what a bull run is in crypto. I think there’s a bull run in any given time or place”
Furthermore, he added an interesting aspect concerning Bitcoin and Ethereum. Talking about the former first, he thought that Bitcoin had over 10 years of adoption cycle that is going to continue. While for ETH, he added that it’s just the beginning, so a period of volatility and drawdowns are bound to be there.
According to Spencer, the market completely undercovered the amount of capital that’s about to move from institutional investor circles. He stated:
“The resounding sense that I get is that people are underestimating the amount of capital that’s coming off the sidelines by probably 1 to 2 orders of magnitude,” Spencer said.
Ethereum and Bitcoin are the two cryptos that are of prime interest for large investors and are both no where “near a top”.
He further added:
“Ethereum has a lot more to be told in a world where there is not hyperinflation or there are not all these crazy things happening than [bitcoin’s story]. It’s very difficult to look at ETH even DeFi through cynical lense. You have to be optimistic.”
Looking at the ETH/BTC ratio, one can see that it tripled in the last 6 months.
Source: Bloomberg
ETH 2.0 upgrade should also play a major role in expanding decentralized finance (DeFi). Right now, many institutions are probably aware of the opportunities present in Defi but may be hesitant to jump into it. Spencer added:
“The innovation cycle in DeFi is happening in real-time.”
How far can DeFi reach?
Vance Spencer predicted the growth of decentralized finance (DeFi); currently valued at $40 billion, he said it could ‘add another zero in a year from today.’
Here’s what he projected for the next 1 to 3 years:
“In the next 2 years, we’ll get around $100billion. Afterwhich, we’ll see an acceleration from 100 to 500 to a trillion mark.”
Source: Walletinvestor
 

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