Discussions about the Bitcoin market cycles continue, despite some analysts' beliefs that the four-year cycle is dead. Xapo Bank CEO Seamus Rocca shared his perspectives on this issue.
Seamus Rocca’s View on Market Cycles
Seamus Rocca, CEO of Xapo Bank, believes that the four-year cycle in the Bitcoin market is not gone. He noted that the risk of a prolonged bear market remains real and can be triggered by something as simple as a lack of news or changes in the market.
Institutions and Their Impact on the Market
Rocca doubts that institutional buying can drastically change the historical trends of the Bitcoin market. In his view, market cycles are tied not so much to Bitcoin itself but to human psychology. He said: 'We all want to think that Bitcoin is an inflation hedge, and I believe that it will be that inflation hedge one day. But I'm not sure we're there yet.'
Experts' Warnings
Some analysts and investors also warn that re-leveraging and reallocating assets could trigger new bear markets. For example, the risk of a 'contagion effect' could arise from a lack of fresh news in the market, causing it to 'run out of steam'.
The debate about Bitcoin cycles continues, and expert opinions vary. It is important to consider different viewpoints to better understand the dynamics of the crypto market.
