Kyle Samani, co-founder and managing partner of Multicoin Capital, sees the coming crypto bear market as being very different from the previous one.
A long period of pronounced bearish sentiment for the crypto market has brought bitcoin down from its $69,000 high to around $49,000, and wiped around $700 million from the crypto global market cap at the same time.
Many analysts are calling a bear market. Bitcoin is bumping along and barely holding the 100-day moving average. Add to this the Fed’s recent announcement of increased tapering and impending interest rate rises, and the outlook may look more than a trifle bleak.
However, according to Kyle Samani, when the bear market does arrive it will be quite different to the one in 2018/19. He cites the previous bull market as having many crypto projects that still didn’t work, and offered little or no utility. He said that the hype was just based on white papers that were just promises at the time.
But for this bull market he states:
"This time around, that's just not true. This time around, everything works. There's real utility and you can see the value of that."
According to an article on Business Insider earlier today, VC funds have invested a record $30 billion into the crypto industry. This is nearly 4 times the $8 billion that went into the sector in 2018.
The article explains that most of this investment went into NFTs, DeFi, the Metaverse, and gaming projects. With this amount of funding, the projects in these niches could start to decouple from bitcoin and react less sharply to the gravitational pull from the apex crypto.
"I think that you will continue to see bitcoin act differently than the rest of the market. The traditional views of crypto were just the other assets were levered exposure to BTC or they were just higher beta. The thing is now these assets all do different things, and they have different functions, different utility."
Three tokens that Samani’s Multichain Capital Fund has bought, and that he’s particularly bullish on, are Solana (SOL), Helium (HNT), and the Graph (GRT). Other huge successes for the fund are Terra (LUNA), which is up 13,861% YTD, and also Kadena (KDA) up 7,658% YTD (figures taken from Messari).
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.