Senior cryptocurrency investor Arthur Chong has stated that the era of severe digital asset declines and long-term bear markets may be over. As the CEO of DeFiance Capital, Chong believes that the cryptocurrency market is potentially entering a new phase of maturity, resembling behavior seen in the stock market. He stated, “The cryptocurrency market may continue to evolve, and we may not see drastic declines of 70-80% every few years. Instead, we may witness stable growth similar to the S&P 500 index since the 2008 financial crisis.”
Chong emphasized that, aside from the crash during the COVID-19 pandemic in 2020, the US stock market has generally shown an upward trend. The catastrophic crash predicted by pessimists did not materialize, and returns have become increasingly concentrated in large-cap stocks, while smaller-cap stocks have taken a backseat.
Read more:
Bitcoin and Ethereum Price Alerts from Top Traders
If this trend continues in the cryptocurrency market, Chong believes that future bull markets may not uplift all altcoins as they have in the past. Instead, only a few winners may receive significant returns, similar to Nvidia’s performance in the stock market. He stated, “Most altcoins may not be good investments, but some will provide extraordinary returns, just like Nvidia has done regularly.”
Despite the current unfavorable market conditions, Chong remains optimistic about the future of cryptocurrency. He believes that Bitcoin (BTC) and Ethereum (ETH) are undervalued, especially because they are the only two cryptocurrencies without regulatory uncertainty. “The market has yet to fully realize that BTC and ETH are the only cryptocurrencies without regulatory issues, which makes them attractive to traditional finance,” he added.
