The Era of Cryptocurrencys Massive Collapse and Prolonged Bear Market in the Rearview

Senior cryptocurrency investor Arthur Chong stated that the era of severe digital asset declines and prolonged bear markets may be over. Arthur Chong, CEO of DeFiance Capital, shared that the cryptocurrency market may be entering a new mature stage, with behavior starting to resemble that of the stock market. He pointed out, “The cryptocurrency market may continue to evolve, and we may not see drastic drops of 70-80% every few years. Instead, we may see stable growth similar to the S&P 500 index since the 2008 financial crisis.” Chong emphasized that aside from the collapse during the COVID-19 pandemic in 2020, the US stock market has mostly shown a trend of gradual increase. The predicted major collapse by pessimists did not materialize, with returns becoming more concentrated in large-cap stocks while smaller-cap stocks took a backseat. If this trend continues in the cryptocurrency market, Chong believes that future bull markets may not boost all altcoins like in the past. Instead, only a few winners will see significant gains, similar to Nvidia’s performance in the stock market. “Most altcoins may not be good investments, but some will provide extraordinary returns, like Nvidia regularly does.” Despite the current unfavorable market conditions, Chong remains optimistic about the future of cryptocurrency. He believes that Bitcoin (BTC) and Ethereum (ETH) are undervalued, especially because they are the only two cryptocurrencies without regulatory uncertainty. “The market has not fully realized that BTC and ETH are the only cryptocurrencies without regulatory issues, making them attractive to traditional finance,” he added.