Trader and analyst Michael van de Poppe refuted investors’ expectations that the price of the first cryptocurrency would fall to $12,000 and that altcoins would capitulate before a new bull market.
“Altcoin investors are slowly losing faith in the market, as assets have yet to move. Since May 2021, most altcoins have been in a downtrend, and the bear market has persisted for more than two years,” he wrote.
The analyst described this as “not surprising” in the wake of hacks, bankruptcies and lawsuits in the crypto industry. Van de Poppe also noted that this is the longest bear market for cryptocurrencies.
He noted that bearish sentiment on social media is most often among those who first invested in digital assets in 2021. They are experiencing their first bear market.
“For them, the slow erosion of money feels extremely painful, and they expect only further declines in their portfolio’s value. Why? They have lived through it, and people forecast the future based on historical data,” the expert stressed.
In his view, a second capitulation phase is underway—the most boring part of the cycle, during which it seems that nothing is happening in the markets.
“Be patient, enjoy the realisation that you are still in the market, accumulate positions. […] Large institutions are stepping in, and the wisest thing you can do is follow them,” added van de Poppe.
In June, 10T Holdings co-founder Dan Tapiero stated the end of the bear phase and forecasted an “explosive” rally. In July, Binance CEO Changpeng Zhao spoke about preparing the platform for a new bull market.
Earlier, Markus Thielen, Matrixport’s head of research, forecasted Bitcoin to rise to $125,000 by the end of next year. Analysts at Standard Chartered also reached a similar conclusion — $120,000 in 2024.