Markets
Investor Arthur Cheong Says Crypto Could Mirror S&P 500 Growth After 2008 Crash – Here’s What He Means
Veteran crypto investor Arthur Cheong believes that significant declines and multi-year bear markets could be a thing of the past for digital assets.
The CEO of DeFiance Capital tell his 169,400 followers on social media platform
“Nuanced view: It’s entirely possible that the crypto market is maturing and we’re not seeing wild, complex swings with a 70-80% drop every two years, but rather complex secular growth like that which the S&P 500 experienced after the GFC (Great Financial Crisis) of 2008. ).
Excluding the Covid-19 crash in 2020, the US stock market has been range bound or gradually collapsed, where all the bears calling for a major crash have been proven wrong, but returns are also concentrated from more and more on large and mega-caps, while values and small caps remain unloved. a long moment.”
Cheong says that if his thesis pans out, future bull markets will no longer serve as a tide that lifts all boats, suggesting that most altcoins will not experience massive rallies similar to those seen in previous cycles.
“Similar phenomena would mean most alternatives are uninvestable, but some winners will deliver eye-popping returns and hopefully we’ll get an Nvidia-like result every few years while most alternatives will be disappointing. “
Also the seasoned crypto investor Remarks that altcoins will have to chart their own path if they want to succeed.
“Also, you can’t ignore the fact that the market is path-dependent, there’s nothing predetermined. If mass adoption happens like Telegram onboards half its user base to TON, how much do you think TON will be worth?
But for now, Cheong think that market conditions are about to improve for crypto. He also has believes than Bitcoin (BTC) and Ethereum (ETH) are undervalued given that they are the only two digital assets without regulatory overload.
“I think the market still hasn’t factored in the fact that BTC and ETH are the only two cryptocurrencies that have no uncertainty about their regulatory status and are attracting demand from TradFi.”
Last week, blockchain development company Consensys announcement The United States Securities and Exchange Commission (SEC) has concluded its investigation into Ethereum 2.0, which sought to determine whether the second-largest cryptocurrency by market capitalization is a security.
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