The host of the popular YouTube channel Coin Bureau thinks digital assets are in a completely different place than they were during the “crypto winter” of 2018/2019.
The pseudonymous analyst known as Guy tells his 1.92 million YouTube subscribers that the two time periods are “almost incomparable.”
“The markets have evolved. More people know about crypto. More people are using crypto. The investors are different. The investors are investing based on different theses. The conditions that led to the last crypto winter are nowhere to be found.”
Guy argues that unlike the massive boom in initial coin offerings (ICOs) that caused the price bust in 2018, prices are down right now due to external factors.
“The markets are tanking right now because of factors that are way, way outside of the crypto market. A global pandemic and monetary stimulus not seen in over 100 years [are] pretty likely to have big implications for nearly all asset classes, and crypto is no different.
In fact, part of the reason that we’re seeing these moves is precisely because crypto has become such an investable asset class. Those institutional investors who allocate to equities are now taking general risk off the table.
They’re not discriminating between ETH and Netflix, Bitcoin and Tesla. They are worried about the Fed hiking rates, war with Russia, supply chain disruptions, pandemic variants – it’s a global macro landscape and crypto is being caught up in it.”
The analyst also notes there is a different regulatory and political landscape for crypto. While China had a big influence on the crypto markets in 2018, Guy argues the country is now “increasingly irrelevant” to the space citing its recent Bitcoin (BTC) mining ban.
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