Arthur Chong, a veteran cryptocurrency investor, suggests that the era of severe downturns and prolonged bear markets for digital assets may be behind us.
Arthur Chong, the CEO of DeFiance Capital, believes that the cryptocurrency market may be entering a new phase of maturity, resembling the behavior of the stock market. He noted, “It is possible that the crypto market will evolve, and we may not see extreme downturns of 70-80% every few years. Instead, we may witness stable growth similar to that of the S&P 500 after the 2008 financial crisis.”
Chong emphasized that the US stock market, excluding the COVID pandemic crash in 2020, generally exhibits a gradual upward trend. The major crashes predicted by pessimists did not materialize, while returns increasingly focused on large-cap stocks, while those with smaller market capitalization remained in the background.
If this trend persists in the crypto market, Chong believes that future bull markets may not lift all altcoins as has happened in the past. Instead, only a few winners will see significant profits, similar to the way Nvidia has performed in the stock market. He stated, “Most altcoins may not be good investments, but some of them will provide exceptional returns, much like Nvidia does periodically.”
Despite the current market conditions, Chong remains optimistic about the future of cryptocurrencies. He believes that Bitcoin (BTC) and Ethereum (ETH) are undervalued, especially as they are the only two cryptocurrencies free from regulatory uncertainties. He added, “The market has not fully realized that BTC and ETH are the only cryptocurrencies without regulatory issues, which makes them attractive to traditional finance.”