Why I’m getting bullish crypto again

Why I’m getting bullish crypto again

September 14, 2023

Is it time to be bullish crypto?

I'm hearing more and more bearish talk about crypto markets. Especially after last week rally and reversal of the GBTC ruling. This week more news hit the bearish side: FTX will be eligible to sell, adding hundreds of millions of sell pressure to the market.

But I can't help feel bullish, and here’s why. It’s a bit anecdotal, but the signs are there:

  • Friends, group chats and influencers are ready for any match to ignite them. They're all tired and bored. Dying for the new thing. Any trend could catch on like wildfire. Sentiment inside crypto is ready for a new rally. Just witness the friend.tech explosion that took charge of sentiment over a weekend.
  • Lots of prospective new use cases in the next 6-12 months: real world assets can bring new money and yield on chain, games and better UX can finally be a thing. Mountain Protocol just launched a yield bearing stable coin. Friend.tech showed a good way to onboard users into good UX where you don't need to sign every single tx (although I don’t think it will last as a product). Games might finally be ready. New NFT structures can unlock new use cases.
  • Outside money can onboard once we receive regulatory clarity, something that's happening outside the US and more and more inside the US over the next 6-12 months. Odds are that a BTC ETF will be approved and this will drive new inflows into the ecosystem. The narrative of ‘anyone who wanted to buy bitcoin, already did” is completely false. Put that together with a BTC halving next year and that could be enough to set everything on fire.

Macro is the big unknown - will money remain costly? Will the Fed continue to raise rates? Keep them higher? Will they cut? Who knows. Definitely not me, but the above points give me good reason to be bullish and take the longer term horizon that things are primed and ready to go.

Designing Tokenomics by Yosh Zlotogorski