The four-year cryptography market cycle to which merchants and investors have been used is no longer also pronounced due to the maturation of the crypto as a class of assets and the participation of institutional investors, according to the co-founder of Polygon, Sandeep Nailwal.
During a recent episode of Cintelelegraph’s chain reaction, Nailwal said that overall speculative activity was down due to high interest rates in the United States and low liquidity conditions, but will once rebound the reduced rates and that the Trump administration is settling in its new role.
Although interest rates on the bonds of the treasury at 10 years have decreased significantly, the rates remain relatively high. Source: Tradingview
Nailwal added that even if he expects titles of 30 to 40% between cycles and always expects Bitcoin (BTC) to have had an effect on the markets, the four -year cycle is now less pronounced. Nailwal said:
“We have generally experienced titles of 90% between cycles, which is very normal in crypto. I think these dirts will be less pronounced and they will feel a little more professional, more mature, especially for the cryptographic active ingredients of Blue Chip.”
The founder of Polygon concluded that once the upward trend resumes and the cryptographic markets are experiencing a prolonged bull race, the capital will run larger ceiling assets in smaller caps.
In relation: The domination of the BTC has increased regularly since 2023, is the Altans season now a relic?
Other four -year cycle disruptors
The executive decree of American president Donald Trump establishing a Bitcoin strategic reserve is one of the factors that market analysts say they distort the market cycle to four years.
Pro-Crypto policies of the Trump administration have also legitimized crypto in the eyes of institutional investors, which should lead to new capital flows and reduce the volatility of digital assets.
Flow in the Crypto ETF for the week of March 21. Source: Corners
The advent of the funds negotiated on the stock market (ETF) also disrupted the four -year cycle by supporting the prices of digital assets which have ETFs and sequestrated capital in these investment vehicles.
Given that FNBs are traditional financial products that do not give the holder to underlying digital assets, these investment vehicles prevent the capital from spinning freely in other assets.
Macroeconomic pressure and geopolitical uncertainty also have a disruptive effect on market cycles, because investors fuvert assets at risk for more stable alternatives such as government species and titles.
Review: Bitcoin “will start tearing” as Trump surveys improve: Felix Hartmann, X Hall of Flame
