The four -year cryptocurrency market cycle, which traders and investors got used to, is no longer pronounced because of the maturation of cryptography as a class of asset and the participation of institutional investors, according to co -founder of Polygon Sandeepa Nailwal.
During the recent episode In the CointeLgraph chain reaction, Nailwal said that general speculative activity has fallen due to high interest rates in the United States and low credibility, but will affect the rates, and Trump’s administration has resolved its fresh role.
Although interest rates from 10-year tax bonds have dropped significantly, the feet still remain relatively high. Source: TradingView
Nailwal added that although he is expecting 30-40% withdrawal between cycles and still expects half of Bitcoin (BTC) to have some impact on the markets, the four-year cycle is now less clear. Nailwal said:
“Basically, we saw 90% of payments between cycles, which is very normal in cryptography. I think that these outflows will be less pronounced and will feel a bit more professional, more mature, especially in the case of Blue Chip cryptocurrency assets.”
The founder of Polygon stated that after the resumption of spread, and cryptographic markets would experience a long -lasting bull, then the capital will turn from larger CAP assets into smaller CAP assets.
Related: The domination of BTC has been constantly growing since 2023, is ALTSASON now a relic?
Other disturbances of the four -year cycle
The executive order of US President Donald Trump establishing a Bitcoin strategic reserve is one of the factors of market analysts, as they claim that it distorts a four -year market cycle.
The Professor policy of the Trump administration also justified the crypto in the eyes of institutional investors, which should introduce fresh capital flows and reduce the variability of digital assets.
It flows into ETF cryptocurrencies on March 21. Source: Coinshares
The emergence of rotary funds (ETF) also disrupted the four -year cycle, supporting the prices of digital assets that have ETF and sequesified capital in these investment vehicles.
Because ETFs are established financial products that do not give the owner of basic digital assets, these investment vehicles prevent freely to turn capital into other assets.
Macroeconomic pressure and geopolitical uncertainty also have a destructive impact on market cycles, because investors run away from risk assets for more stable alternatives, such as cash and government securities.
Warehouse: Bitcoin “starts tearing” when Trump’s surveys improve: Felix Hartmann, X Hall of Flame
