The significant gap between the increasing short-term market uncertainty that crypto traders are experiencing and the growing optimism among crypto builders presents an ideal opportunity for long-term investors, as noted by a founder of a prominent crypto hedge fund.
“This is one of the clearest discrepancies I’ve encountered between sentiment and fundamentals,” the founder highlighted in a recent post on X.
Rising optimism beyond crypto enthusiasts
While traders and analysts have recently adopted a bearish outlook on crypto, developers and those working in crypto companies that are less affected by market cycles maintain a more positive perspective. The founder commented, “All the feedback I’m getting from various crypto-related projects or companies that aren’t dependent on immediate market participants is encouraging.”
Source: Nic Puckrin
With this in mind, he expressed optimism that crypto represents a “good buy” over the next year, though he is uncertain if it has hit a short-term bottom yet. Another crypto analyst recently stated that for Bitcoin to confirm that it has reached its lowest point, it would need to close a week above $89,000.
Nevertheless, the broader crypto market experienced a slight uptick on March 14, giving traders a boost in short-term confidence. In the last 24 hours, Bitcoin (BTC) surged 3.16% to $84,638, Ether (ETH) gained 1.79%, and XRP (XRP) increased by 6.01%, according to data from CoinMarketCap.
During the same 24-hour period, the Crypto Fear and Greed Index, which gauges overall market sentiment, climbed 19 points to 46. This score, while still situated in the “Fear” range, is approaching a neutral position.
Source: Dan McArdle
The founder of MN Trading Capital remarked that Bitcoin’s recent price increase has bolstered his confidence that the asset will resume its upward trajectory by June.
Crypto market offering chances for “sustainable value” investments
“It’s clearly made a higher low and is evidently approaching its previous highs,” he noted in a recent post on X.
“It seems quite likely that we’re initiating a new uptrend on the lower timeframes as we move into a robust Q2,” he added.
The hedge fund founder also suggested that now might be an opportune moment to consider traditional venture capital investments in the crypto space with a longer-term focus. “This is a good time to seek out ‘traditional’ venture capital-type crypto investments. By ‘traditional,’ I mean a longer-term perspective centered on real sustainable value creation, rather than quick monetization schemes,” he explained.
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