The recent challenges faced by the cryptocurrency market have left many investors on edge, particularly following what some have called the worst quarter since the FTX crisis. However, insights shared during the LONGITUDE event by Cointelegraph in Paris, France, suggest that both Bitcoin and altcoins may not have reached their peak yet.
During a panel discussion, Michael van de Poppe, founder of MN Capital, remarked that the bull market for cryptocurrencies is just beginning. He noted that despite Bitcoin’s recent decline below $80,000 due to global tariff complications, historical patterns indicate that chaotic sell-offs typically provide favorable conditions for market reversals. Drawing a parallel to the COVID-19 crash in 2020, when Bitcoin plummeted by nearly 40% in one day, Van de Poppe expressed optimism. “That was the actual bottom, and since then, Bitcoin went 20x,” he stated.
Eric Turner, CEO of Messari, echoed similar sentiments, suggesting that what has transpired thus far is not indicative of a full bull market, but rather two distinct market dynamics. He mentioned that Bitcoin had primarily absorbed flows from exchange-traded funds, while other phenomena such as the memecoin trend represented short-term fluctuations. Turner believes that the true onset of the bull market could materialize in the latter half of this year, specifically in Q3 or Q4.
Shifting the focus to broader contexts, John Patrick Mullin, co-founder and CEO of Mantra, highlighted the positive policy developments emerging from the United States as a potential catalyst for market growth. He expressed excitement about the favorable tailwinds brought on by the current Executive Branch, with pivotal changes in crypto regulations anticipated, particularly regarding stablecoin legislation.
Favorable Changes Amid Economic Uncertainty
U.S. President Donald Trump is at the forefront of a significant overhaul of crypto regulations, with lawmakers edging closer to passing landmark bills for stablecoins and overall market structure. The appointment of pro-crypto leaders to influential positions, including Paul Atkins as a potential chair of the Securities and Exchange Commission, has generated optimism in the crypto community.
Despite these encouraging developments, the anticipated bull market has yet to gain momentum, primarily due to concerns around Trump’s broader agenda, particularly his approach to trade imbalances which has sparked fears about economic growth. The recent tariff proposals labeled “Liberation Day” were perceived negatively by investors, igniting the largest exodus from U.S. stocks since the onset of the pandemic.
Nonetheless, history suggests that in times of crisis, interventions from the U.S. Federal Reserve could play a significant role in stabilizing the market. Van de Poppe noted that during previous crises, such as the COVID-19 pandemic, the Fed stepped in to lower rates and inject liquidity into the economy to promote recovery. He posed a critical question: “The question is when?” remarkably highlighting the potential for recovery if history were to repeat itself.
As we navigate through this fluctuating landscape, keeping an eye on policy, macroeconomic conditions, and market trends will be critical for investors looking to capitalize on future opportunities in the crypto space.
