Synthetix Founder: There’s a Chance Bitcoin “Barely Moves” in this Bull Market
Bitcoin has seen extreme strength over recent weeks, rallying around 30% in the past month. One pioneer in the cryptocurrency space thinks, though, that BTC may not see a great bout of price appreciation this market cycle.
Related Reading: These 3 Trends Suggest Bitcoin Is Poised to Bounce After $1,000 Drop
Synthetix Founder Doesn’t Think Bitcoin May Explode Higher This Cycle
Synthetix’s founder Kain Warwick thinks that Bitcoin may actually be a dormant investment during this market cycle.
On August 30th, the pioneer in the DeFi space took to Twitter, writing that “there is a very real chance that BTC barely moves as this bull market plays out.” He backed this sentiment by pointing to the fact that money entering the crypto space doesn’t stick with Bitcoin, but is instead distributed to altcoins.
“There is a very real chance that BTC barely moves as this bull market plays out. The days of BTC as on-ramp to crypto are over, it’s being bypassed almost completely as new money comes in primarily via stablecoins.”
There is a very real chance that BTC barely moves as this bull market plays out. The days of BTC as on-ramp to crypto are over, it’s being bypassed almost completely as new money comes in primarily via stablecoins.
— kain.eth (@kaiynne) August 30, 2020
Related Reading: Crypto Tidbits: MicroStrategy’s $250m Bitcoin Purchase, ETH DeFi Boom, BitMEX KYC
Not everyone agrees with this, though.
Tyler Winklevoss and Cameron Winklevoss, the co-founders of Gemini, recently wrote that Bitcoin is poised to go parabolic this cycle due to potential inflation:
“Inflation is coming. Money stored in a bank will get run over. Money invested in assets like real estate or the stock market will keep pace. Money stored in gold or bitcoin will outrun the scourge. And money stored in bitcoin will run the fastest, overtaking gold.”
BTC to Underperform This Market Cycle
Although most don’t agree with the sentiment that Bitcoin will “barely move” this cycle, a growing number of commentators are agreeing that it will be an overall underperformer.
Kelvin Koh of The Spartan Group, a crypto venture and hedge fund based in Hong Kong, recently noted that Bitcoin’s dominance may see a strong decline in this market cycle.
The former Goldman Sachs partner remarked that BTC dominance has been on a “steady decline” and will eventually “fall below the Jan 2018 lows (33%) in the current DeFi bull market.”
BTC dominance has been on a steady decline for the past 12 months. I expect this ratio to fall below the Jan 2018 lows (33%) in the current DeFi bull market. We are currently at 59%. Still a long way to go….. pic.twitter.com/fPfADF5sui
— SpartanBlack (@SpartanBlack_1) August 29, 2020
Related Reading: Yearn.finance (YFI) Jumps 30% Towards Bitcoin’s All-Time High Price of $20k
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Nick Chong, Khareem Sudlow
