While cryptocurrency traders debate which speculative narrative will drive the next bull market, one analyst argues that the answer may be clearer and may lie in the largest market capitalization cryptocurrency itself.
“The general feeling is that the coming bull market is all about Bitcoin and Layer 2,” Quantum Economics founder and cryptocurrency analyst Mati Greenspan told Cointelegraph.
Bitcoin’s ‘first story’ approaching $100,000
“The story of Bitcoin’s origins has snowballed since Taproot was implemented,” Greenspan added. The Taproot upgrade took place in November 2021 and laid the foundation for accelerating decentralized financial services over the Bitcoin network.
He pointed out that the past 12 months have “opened up new possibilities for DeFi and NFTs on the Bitcoin main chain.”
Greenspan believes a $100,000 Bitcoin price in 2024 is “definitely possible,” especially if a cryptocurrency-supporting presidential candidate is elected in November.
“At this point, we are waiting for Trump’s victory to be confirmed and we will move on to the primary soon.”
At the time of publishing, Bitcoin is trading at $68,553. Source: TradingView
This comes after Bitcoin millionaire Erik Finman told Cointelegraph, “If Trump wins, I believe Bitcoin could hit $100,000 during his second term.”
However, Greenspan is not very optimistic about Ethereum. “It is difficult to make a bullish case for Ethereum because there are currently so many generally accepted cheaper and scalable market competitors,” Greenspan explained.
On October 20, Cointelegraph reported that Bitcoin’s market capitalization surpassed that of Ethereum by more than $1 trillion.
Market participants generally expect a bull market to begin with Bitcoin hitting new all-time highs. Once Bitcoin is perceived as number one among traders, capital typically diverts to altcoins and more speculative tokens as traders seek larger returns.
relevant: Bitcoin Analyst: BTC Price of $100,000 by February ‘Completely Reasonable’
Skepticism about the future of AI Memecoin
When it comes to memecoins, Greenspan is somewhat skeptical. When asked about recent expectations for Goatseus Maximus (GOAT), which was endorsed by AI bot Truty Terminal and achieved a market capitalization of $688 million in just 11 days after its launch on October 14.
“They may do well or they may not,” Greenspan argued.
“We know the market can be volatile in the short term, but depending on which market it is, decisions will be difficult. Long-term investors tend not to take these things seriously, at least until they reach critical mass,” he added.
Greenspan suggests investors interested in speculative tokens during the “hype” phase consider “what is the role of the coin?” And it begs the question, “Why can’t Bitcoin, Ethereum, or any other layer 1 achieve its goals?”
He also emphasized the importance of researching project development teams and what drives supply and demand dynamics.
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.