Former Bloomberg Intelligence analyst Jamie Coutts thinks today’s crypto market parallels the US stock market at the turn of the 20th century.
Coutts, who now works as a freelance blockchain strategist, tells are 9,738 followers on the social media platform
“This unique environment offers abundant alpha-generating opportunities unmatched in any other asset class. But this window will only last a few years before it is taken away by arbitration.
At the turn of the century, the American economy emerged as the global economic superpower, and capital poured in.
The network state/crypto ecosystem is on the rise today, and ETFs (exchange traded funds) will trigger massive capital inflows over decades.
In the pre-1933 and 1934 Securities Act era, the U.S. stock market operated in a “loose” regulatory environment, was highly fragmented, dominated by large whales, and suffered from information asymmetry. Very much like today’s crypto markets.”
Coutts too notes that Bitcoin (BTC) still dominates the current crypto market, but says a shift to altcoins ‘feels imminent’.
“Given the significant capital flows expected from BTC ETFs next year, this cycle may take longer. Typically, the Altseason reaches within 1-1.5 years after the low point in the cycle [around] Q2 2024.
While human behavior remains a constant, with the rotation fueled by BTC gains, FOMO (fear of missing out), and greed, we will see the emergence of some clear long-term winners in this cycle; Alt-Layer-1s, Layer-2s and DApps (decentralized applications) with product market fit and growing acceptance.”
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