The crypto market may not be out of the woods yet, but Funstrat’s Head of Digital Asset Strategy Sean Farrell believes the odds are slowly starting to favor digital assets over traditional markets. In a recent podcast, Farrell said macro conditions are still keeping Bitcoin and altcoins under pressure. However, he believes any sharp correction from here could become one of the best buying opportunities of the cycle.
Strategy Is No Longer the Biggest Concern
Farrell said fears surrounding Michael Saylor’s Strategy have eased significantly after the company raised more cash and reduced the immediate risk of a liquidity crunch.
That doesn’t mean the story is over. Strategy still carries around $2 billion in annual preferred dividend obligations, along with nearly $5 billion in bonds that can be put back to the company between 2027 and early 2028.
If Bitcoin remains stuck at current levels for years, those obligations could become a problem. But for now, Farrell believes the worst-case scenario has largely been avoided.
Why Bitcoin Has Been Lagging
Many investors are frustrated that Bitcoin hasn’t matched the rally in U.S. stocks. Farrell says that’s actually normal.
Over the past year, company earnings have grown faster than global liquidity, making equities the preferred investment. In that environment, investors naturally chase productive assets rather than monetary assets like Bitcoin.
He expects that trend to change over the next three to six months as liquidity conditions improve. When that happens, crypto could once again attract fresh capital.
Ethereum Could Have the Edge
While Farrell remains bullish on Bitcoin, he argues that Ethereum may offer better upside over the next 12 to 18 months.
The launch of Robinhood’s Ethereum Layer-2 blockchain adds another long-term use case for the network. The platform isn’t generating meaningful revenue yet, but Farrell says the bigger story is the growing adoption of tokenized assets and corporate blockchains built on Ethereum.
He also said Ethereum currently looks like a “cleaner trade” because it doesn’t face the same potential selling overhang tied to Strategy’s Bitcoin holdings. On top of that, Ethereum developers are making faster progress on preparing the network for future quantum computing risks.
How Low can BTC Go?
Despite the short-term uncertainty, Farrell says crypto’s risk-reward now looks more attractive than equities.
He remains cautious because of tight liquidity, elevated real yields, and uncertainty around Federal Reserve policy. Still, if Bitcoin drops into the low-$50,000 range, or even toward $48,000, he sees it as a rare opportunity rather than a reason to panic.
“If we get there,” Farrell said, “I’ll be backing up the truck.”