The purpose of this text is to provide you with my point of view; this is absolutely not investment advice.
The crypto-asset market is currently in an expansion phase; the first bull leg started on December 16, 2020, when Bitcoin's previous price record was broken. Since then, the market has been in the spotlight, growing from a total capitalization of $1 trillion in early January to almost $2 trillion today.
In just 3 months, the crypto-asset market doubled in size, whereas it had taken 12 years to reach its first $1 trillion.
This first bullish leg ended in late February 2021. Since then, we have been in a range (horizontal channel, price stabilization). A second bullish leg seems possible starting in April.
This second leg of the bull market will likely be the last for this cycle. We will then enter a distribution phase followed by capitulation (bear market).
We will never be able to predict the exact time the market will change state, but indicators can lead us to imagine a range between August and December 2021.
This cycle repeats every 4 years and seems to run like clockwork. However, we can note that the crypto-asset market has matured significantly and has changed hands. Institutional investors are now in the game and entered the market around the price of 30,000 dollars per Bitcoin and then around 50,000 dollars per Bitcoin.
Given the massive influx of institutional capital that today represents nearly 6.77 % Based on the market capitalization, we can say that professional investors are now present and that this bull market will not be the same as the one in 2017.
Like some JP Morgan experts think so, this will also have the effect of reducing the well-known volatility of crypto-assets, and in particular Bitcoin.
The more mature this market becomes and the larger the capital, the lower the volatility will be.
Today, the trend is toward NFTs (Non-Fungible Tokens). It is a special type of crypto token that 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; there are also many other use cases.
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— 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 losses resulting from a decision made based on the information in this letter.
