Veteran cryptocurrency investor Arthur Cheong suggests that the era of heavy declines and prolonged bear markets in digital assets may be behind us. Arthur Cheong, CEO of DeFiance Capital, shared that the crypto market may be entering a new phase of maturity, resembling the stock market in its behavior. He noted:
“It is possible that the crypto market could evolve and we may not see extreme declines of 70-80% every few years. Instead, we could witness stable growth, similar to that of the S&P 500 after the 2008 financial crisis.”
Cheong emphasized that the American stock market, excluding the crash during the COVID pandemic in 2020, generally shows a gradual upward trend. The major crashes predicted by pessimists did not materialize, while returns were increasingly focused on stocks with large market capitalization, leaving those with smaller market valuations in the background.
If this trend persists in the crypto market, Cheong believes that future bull markets may not lift all altcoins, as has happened in the past. Instead, only a few winners will see significant gains, similar to how Nvidia has performed in the stock market.
“Most altcoins may not be good investments, but some of them will provide exceptional returns, as Nvidia does periodically.”
Despite the current market conditions, Cheong is optimistic about the future of cryptocurrencies. He believes that Bitcoin (BTC) and Ethereum (ETH) are undervalued, especially as the only two cryptocurrencies free from regulatory uncertainty.
“The market has not fully realized that BTC and ETH are the only cryptocurrencies without regulatory issues, which makes them attractive to traditional finance,” he added.
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