The founder of cryptocurrency Hex has shared his thoughts on Bitcoin’s future, stating that he believes Bitcoin to be in a bear market that could last for another eight or nine months.
Hex cryptocurrency is a token that was launched on the Ethereum network in 2019 by Richard Heart. The proof of wait cryptocurrency has captured the attention of many crypto investors and is designed to be a ‘Certificate of Deposit’ on the blockchain.
Heart commented on the state of the current crypto market comparing price analysis from the asset’s top performance in 2017 and 2021, predicted the near future of the market, telling Business Insider:
“I think crypto is in a bear market… I think we’re in a bull trap right now. These systems are reflexive, they don’t have base demand, it’s 90% speculation. The last bear market lasted 364 days – I wouldn’t be surprised if we saw 8 or 9 more months of bear.”
While Heart’s comments suggest crypto assets are in for a difficult ride over the next several months, others have speculated that the market is far more bullish than it might look.
With the DeFi ecosystem growing at a rapid pace, few would deny the overall optimism surrounding this crypto ecosystem. In fact, as many pundits have suggested, the fact that institutional backing of DeFi has not abated means that the presence of DeFi will continue to grow and in turn bring with it support of other cryptocurrencies in the space.
And with the support of giants such as PayPal, Square, Twitter, and various financial service platforms offering crypto services, the growing demand for cryptocurrencies is evident. Even financial institutions from Wall Street are moving in on strategic positions, and adding cryptocurrency offerings alongside more traditional portfolios.
In short, the current market is a reflection of the highly volatile nature of crypto, and while early 2021 saw Bitcoin reach its highest peak yet, it was only natural for the cryptocurrency to fall from grace following intense regulatory scrutiny of various cryptocurrencies and the high level of speculation that exists in the space.
While commentators such as Heart believe the lows of the last few months may continue for several more months, other institutional players seem to view the present market with optimism, and look to the future with much anticipation.
Nonetheless, considering the various bans on mining and crypto transactions that have taken place globally this year, it is unlikely that cryptocurrencies will see the peaks of early 2021 until at least next year, if they do make a recovery.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.