Crypto have ‘run out of juice’ and becoming ‘boring’, analysts from Element Digital Asset Management have claimed in a new report.
Thejas Nalval and Kevin Lu, portfolio director and director of quantitative research at the firm, spoke about the different trends and theories surrounding Bitcoin and crypto more widely, and commenting that it could well turn into a waiting game.
They wrote in a joint report: “One can argue that the depressed volatility patterns we’re seeing with Bitcoin is the market slowly adopting Bitcoin as a SoV. That’s a fun theory but premature. One can also argue that Bitcoin price discovery is becoming more efficient due to more natural demand and natural supply. Also possible.
“We think the market has quite simply just run out of juice for now. It’s almost become boring. Seems like everyone is waiting on the sidelines for someone else to make the first move in what could be extremely long game of chicken.”
Nalval and Lu point to the assumption that Bitcoin will receive ETF approval from the SEC as a reason for some of the market’s issues, adding: “Our conclusion is that market participants should be open to the possibility that a Bitcoin ETF will not be approved in the next one or two years.
“To the extent that some possibility of approval is priced in, the market could experience material weakness if a disapproval order is issued.”