Cryptocurrency investor and CEO of DeFiance Capital, Arthur Cheong, expressed his positive outlook for the future of digital assets in a recent social media statement. According to Cheong, the cryptocurrency market may be maturing, suggesting that it could experience more stable growth similar to the S&P 500 after the 2008 Great Financial Crisis, rather than the volatile swings and drastic drawdowns seen every two years.
Cheong pointed out the relative stability of the US stock market, noting that, aside from the 2020 crash caused by the Covid-19 pandemic, it has shown consistent growth, particularly in large and mega cap stocks, while undervaluing value and small caps. He believes that if this trend translates to the world of cryptocurrencies, not all assets will benefit equally from future bull markets, indicating that most altcoins may not see the significant rallies witnessed in previous cycles.
In a nuanced take, Cheong emphasized the possibility of the crypto market maturing and evolving towards a more stable growth pattern, akin to the S&P 500 post-2008 GFC, excluding the Covid-19 crash in 2020. He also highlighted the importance of altcoins carving out their own paths to success, emphasizing the market’s dependence on various factors and the potential impact of mass adoption.
Cheong also discussed the value of Bitcoin (BTC) and Ethereum (ETH), suggesting that they are undervalued due to their clear regulatory status, which attracts demand from traditional finance.
However, Cheong cautioned that his views and opinions, as well as those mentioned in the article, are for informational purposes only and do not constitute financial or investment advice, as investing or trading in cryptocurrencies carries the risk of financial loss.
In other news, Bitcoin struggled to surpass $66 on June 19, 2024, and Standard Chartered revealed plans for a crypto spot trading desk for Bitcoin and Ethereum.