According to Seamus Rocca, CEO of Xapo Bank Bank, the four-year Bitcoin (BTC) market cycle marks its highest ever high, followed by a deep correction.
In an interview with Cointelegraph, the CEO said that durable risks are still very realistic and that they do not require a “tumultuous” event to trigger it. Something as simple as a general slowdown in news, development, or everyday portfolio rebalancing could lead to the next overall market recession. He added:
“We all want to think of Bitcoin as an inflation hedge. I think it’s one day an inflation hedge. But I don’t know if we’re still there. I still see it as a risk-on asset. At least the correlation between Bitcoin, S&P and stocks is still there.”
The CEO said, “The contagion effect can be as simple as there is no new news in the market.
Some Bitcoin investors, industry executives and crypto market analysts say the four-year market cycle has either died or the sharp, long-term periodic revisions have now moved to a point where the existence of institutions and the maturation of crypto as an asset class is no longer the same.
Institutional purchases will not save the market from historical trends
“So many people say, ‘Oh, the cyclical kind of nature of Bitcoin is dead because the system is here,” Seamus Rocca told the Cointelegraph.
The CEO’s perspective is reflected by others in the industry, including Bitcoin educator and analyst Matthew Clutter, author of Bitcoin Bushid and Alexander Svetsky.
https://www.youtube.com/watch?v=hb0z1ti8uys
“Human psychology never changes. Cycles have nothing to do with Bitcoin. They have something to do with people. This time there will be the same boom and crash,” Svetski wrote in the X-Post June 15th.
Others, such as venture capital (VC) company varieties, have warned that excessive changes in Bitcoin finance companies could lead to the next bear market.
However, analysts at VC companies said that transmission could be limited if most of these Treasury companies continue to fund Bitcoin purchases primarily through fairness rather than debt.
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