As the cryptocurrency market, headed by Bitcoin (BTC), begins to consolidate its recent gains, many participants in the crypto field are increasingly confident about its future movements, including Bobby Lee, the founder and CEO of the crypto wallet firm Ballet, who believes that the industry is in for a thawing.
Indeed, Lee discussed Bitcoin trends, as well as the appeal of cryptocurrencies as the flagship decentralized finance (DeFi) asset had crossed the psychological threshold of $30,000, arguing that signs are visible of the crypto winter finally leaving, in the interview with Bloomberg Television streamed on April 17.
As he explained, the maiden digital asset has established a bear-bull chart pattern that has been taking place in roughly four-year cycles, and this same pattern has been happening recently:
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“We’re finally seeing the signs of potential spring, getting out of the winter. It’s been a long time. Crypto has these four-year cycles of ‘bull market – bear market.’ And for a good part of last year, we’ve seen the bear market take Bitcoin down to as low as $16,000. And now we’ve almost recovered a little bit. It’s almost doubled, recently peaked at $31,000.”
Crypto vs. banks
As one of the reasons for the increased interest in crypto assets, Lee singled out the recent bank runs that have made it clear to many people that “when their money is in the bank, it’s actually not always there necessarily because the money is being lent out to other businesses and other firms,” and that “no bank is actually immune to a bank run.”
On the other hand, he argues:
“With cryptocurrency, you have the concept of self-custody. You actually can be your own bank and you can hold yourself without having third-party or counterparty risk. And that’s what makes cryptocurrency like Bitcoin very, very special.”
Due to its divergence from traditional finance, Lee believes that crypto “should be considered a safe haven in the sense that [it] is very different from the tradition of fiat money and the fractional reserve banking.”
Bitcoin price analysis
Meanwhile, Bitcoin was at press time changing hands at the price of $29,661. This represents a 2.02% decline in the last 24 hours but still an increase of 4.62% across the week and 7.99% over the previous 30 days, as charts from April 17 indicate.
Notably, other indicators have pointed to a bullish future for Bitcoin, including the Bitcoin Rainbow chart. If the asset follows earlier patterns, the chart indicates it could cross the $100,000 barrier within the following months or by the end of 2023.
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