Matt Hougan, chief investment officer of cryptocurrency asset management company Bitwise, said that the next bull market cycle in the encryption market will be unprecedented, and believes that the next bull market discourse will be driven by Layer 2. He believes that this will be the three-year cycle in which cryptocurrencies truly penetrate the mainstream.
(Recap:Rich dad’s performance show: I have earned 300%!Bitcoin’s Future Value Sustainability）
(background supplement:Bitwise Ten Predictions 2023: The currency market will recover U-shaped, and USDC will surpass USDT）
CompareBitcoin (BTC) was affected by the personal consumption expenditure (PCE) price index released by the US Bureau of Economic Analysis (BEA) yesterday (25th), which was higher than market expectations, and fell below 23,000 US dollars at one point. The price stabilized slightly this morning (26), and is currently hovering above US$23,000. It was reported at US$23,223 before the press release, an increase of 0.5% in the past 24 hours.
Bitwise Chief Investment Officer: The Encryption Market Will Usher in an Unprecedented Bull Market Cycle
Although the current market is divided on long and short opinions on the future trend of cryptocurrencies, Matt Hougan, chief investment officer of Bitwise, a multi-billion-dollar cryptocurrency asset management company, recently attended the “The Wolf of All Streets” interview program.express，Optimistic regarding the crypto market in the coming years.
Further reading:Bitwise Chief Investment Officer: For the encryption industry, what has the bankruptcy of FTX changed? What can’t be changed?
Hougan mentioned that the next bull market cycle in the encryption market will be unprecedented. He believes that the next four-year cycle (the Bitcoin halving cycle every four years), whether in terms of user adoption, total market capitalization growth, and investors This is shaping up to be the biggest cycle yet in terms of almost everything you care regarding.
If you’re in the developer community, you can see what’s going on, you can feel it. From my experience in the crypto market, the level of excitement is higher than ever.
That’s why (the market price) is up 50% this year. That’s why I think it will end the year with a higher close. I think 2024 and 2025 will be even better.
Further reading:Goldman Sachs: Bitcoin is the asset with the highest return in 2023! Aptos soars 50%, breaks record high of 19 mg
Bitwise Chief Investment Officer: The Next Bull Market Thesis Will Be Driven by Layer 2
Additionally, Hougan noted that every crypto cycle is driven by a “technological breakthrough,” and the upcoming cycle will be no different.
These cycles happen for a reason, there is a major technical breakthrough that drives a new bull market… the reason I’m so excited is because I know what the technical breakthrough that will drive the next bull market is. It is a technological breakthrough bigger than NFT, DeFi and stable currency.
According to Hougan,This breakthrough technology is “Layer 2”. Hougan said that from the perspective of real-world applications, Layer 2 will even have a greater impact than Bitcoin and Ethereum when they first appeared, because Layer 2 has scalable technology that allows everyone to be efficient and Use the blockchain at near-free (low transaction fees) fees.
The things you can do when using the blockchain effectively for free are so fun and exciting. Layer 2 allows for mainstream usage in such a major way that I think it’s a three-year cycle for cryptocurrencies to really penetrate the mainstream.
Further reading:L2 Interpretation” Arbitrum may become the king of Layer 2 if it seizes the token opportunity
Further reading:L2 Interpretation “Why are you “optimistic” regarding the future of the Optimism ecology?
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