After two years of uncertainty since 2017’s mega bull run, the signs are looking promising for a big crypto rally, says the co-founder of market analytics company Digital Assets Data.
“I believe a major crypto bull cycle is inevitable,” CEO Mike Alfred told Cointelegraph.
Coronavirus shakes up the global economy
Several months of coronavirus prevention measures, including business closures and stay-at-home orders, have wounded the global economy. High unemployment numbers means less spending as people look to meet their budgetary needs.
Extended periods of reduced revenue also foreshadow businesses closures. Meanwhile, mainstream financial markets have rallied amid trillion-dollar U.S. government efforts. Several other nations have pushed similar plans forward.
Such government action, matched with improved crypto infrastructure, could boost prices in the crypto sphere and spark a fresh crypto bull run Alfred said:
“The confluence of factors that could help drive this cycle include unprecedented recent interventions by fiscal and monetary authorities around the globe and rapidly improving trading, lending, and custodial infrastructure.”
Uncertainty and government interaction could ignite crypto interest
As of late, a number of mainstream giants have also entered the crypto space, including hedge fund founder Paul Tudor Jones.
“We are seeing large traditional hedge funds start to participate in the space in a meaningful way and retail interest has ticked up as evidenced by search traffic,” Alfred said.
“The interest is real … I’ve had literally 20 friends from outside the industry reach out to me in the last month because they’re interested in getting involved,” he added.
Those contacting Alfred also include older generations who primarily bought mainstream markets prior to their recent understanding of the new asset class.
Recent weeks also yielded naysayers changing their tune as JPMorgan Chase unveiled its nod of approval toward crypto exchanges Gemini and Coinbase — a bold contrast from 2017, when the bank’s CEO Jamie Dimon called Bitcoin a fraud.