22.09.2021

How long will the stage of intensive growth of the cryptocurrency market last?

The season of huge profits in the crypto market is already in full swing. However, against the background of general euphoria, more and more investors and traders are asking one question: how long will all this last?

According to Ari Paul, director of information technology at BlockTower Capital, there is nothing to worry about. We are supposedly still very far from the end of the global bullish trend. According to Paul’s estimates, it will last at least another 9 months, providing a huge number of opportunities for earnings.

Note that the cryptocurrency market is really at the stage of active growth, and it will not be possible to deny this anymore. As an illustration, it is worth taking Ethereum ETH, which is currently estimated at $ 1,654. Exactly three months ago, $ 447 was given for a coin, that is, the growth is equivalent to 3.7 times.

The token of the Polkadot project with the DOT ticker was estimated at $ 4.4 three months ago, while today the exchange rate is at the level of $ 22.37.

These are crazy results in such a short period, and they do not go to any comparison with banking products. At least due to this, it can be argued that the industry has already emerged from the stage of a prolonged decline, which took place in early 2018.

How much more will cryptocurrencies grow?

In a Tweet, Ari Paul stated that the cryptocurrency industry “is on the seventh inning of a bullish trend.” An inning is one of the phases of a baseball game, which usually lasts up to nine innings. Here is a quote from Paul on this occasion, in which he shares his attitude to the situation. The remark is given by Cointelegraph.

That’s where we get the dizzying rotation of the entire market. BTC will go up, then, when the main cryptocurrency takes a break in growth, Ethereum, some large altcoins by capitalization (in this case, these are the most popular representatives of the decentralized finance sphere) and small coins will begin to grow. The circle will be repeated. Of course, all this will not be without market corrections of 30-60 percent.

Recall that the subsidence of exchange rates in the course of asset growth is a normal situation. They allow you to create a new level of support, that is, to give investors the opportunity to buy at a different price. For clarity, we present a graph of the Bitcoin exchange rate, which collapsed several times even during its steady growth in 2017.

At first glance, it may seem that the seventh inning of nine is already too late, but the expert does not think so. His “bull counter” of the market started in 2018, when the industry reached its local bottom after the previous bull run. He continues.

I started counting the bullish trend at the end of the previous market cycle at the end of 2018.

Paul also made an assumption about the time intervals for the continued growth of cryptocurrencies. According to his calculations, investors have another 9 to 22 months to fully use the potential of the uptrend in their favor. As for the goals on the chart: the expert expects that the bullish trend will end for Bitcoin when its price will be in the range of 100 to 400 thousand dollars, while many altcoins will show more impressive returns over the same period of time.

Later, Paul added a few more explanations to his reasoning.

My analogy with baseball causes some confusion, since there is no consensus on how to classify the phases of the bull market, or even where it begins.

In other words, you should not perceive the local growth of altcoins and Bitcoin as the peak of the entire bullish trend. Paul noted that there will be more or less deep corrections on the way to the real culmination of the market growth-and you need to be prepared for this. Therefore, it would be logical to allocate at least part of the capital to cover the risks in this case.

Note that the founder of the Binance cryptocurrency exchange has other ideas about the possible duration of market growth. In his opinion, the flight stage of the industry can last up to four years. And this is almost twice as much as Ari Paul’s landmark, that is, it will not be possible to find a single point of view here for sure. Read more about Zhao’s opinion in a separate article.

We believe that such predictions should not be blindly trusted, since no one can predict the future. Whatever it was, while the key industry participants agree that the cryptocurrency market is actively developing, and then we will continue. Therefore, users should clearly monitor the situation more actively and look for new opportunities. Apparently, there should be enough of them.

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