The Cryptoma market So far, have gone through cycles of four years, which has established itself as an apparently firm pattern. But according to Sandeep Nailwal, the co -founder of Polygon (Matic), this four -year cycle begins to finally lose influence.
According to Nailwal, the increasing maturity of the market and the growing participation of institutional investors lead to the effects of Bitcoin (BTC) Halvings are lower.
Professionalization of the crypto market
According to Nailwal, future market returns are perceived “more professional” and “mature”. This applies in particular to large cryptocurrencies such as Bitcoin and Ethereum (ETH).
Although he continues to predict severe corrections of 30 to 40 percent between the cycles, the drastic burglaries of 90 % will no longer occur.
The high interest rates in the United States and the low liquidity are currently responsible for this, Nailwal said in conversation with Cointelegraph.
These factors dampen speculation and thus lead to less drastic price movements. However, he assumes that the market will recover as soon as the interest rates are reduced and Trump’s politics is implemented.
New politics, new Bitcoin cycle?
According to Nailwal, the political changes currently implemented under the Trump administration play an important role in the change in the four-year cycle.
An example of this is the National Strategic Bitcoin Reserve of the United States. These measures strengthen the trust of institutional investors and attract new capital, which in turn reduces volatility.
In addition, an increase in stock exchange-traded crypto funds (ETFs) can be expected under current politics. These ETFs have a stabilizing effect on the courses because they bind capital into specific tokens and thus prevent it from flowing quickly into smaller crypto projects.
In the past, profits were often postponed by Bitcoin in Ethereum and then into smaller old coins. Nailwal expects this pattern to be less pronounced in the future – at least as long as there is no long -lasting bull market, in which such capital relocation typically appear again.
The macroeconomic influence
Finally, Nailwal points out the macroeconomic pressure and geopolitical uncertainties, which will influence the four -year cycles in the future.
In uncertain times, institutional investors in particular tend to flee stable assets such as cash and government bonds. This will also affect the volatility of the cryptoma market.