As the early ‘Uptober’ buzz fades and Bitcoin struggles to hold $110,000, overall crypto market sentiment has seemingly taken a hit. According to online reports, market participants are disappointed with the recent performance, but some experts argue that this means the sector is ‘winning’.
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Crypto vibes are ‘sad’ despite industry adoption
Thursday, investor and analyst Will Clemente said shared on X that “the atmosphere in the crypto group chats is just sad.” He explained that investors seem “jaded, depressed and defeated,” adding that they are “giving up completely” and moving to other asset classes after BTC’s performance this year.
Bitwise CEO Hunter Horsley weighed in on the issue: affirmative that “Crypto residents are now in a multi-month bear market sentiment” while “off Twitter” sentiment is the “best it has ever been.”
Horsley explained that the positive offline outlook is fueled by the notable reduction in regulatory risk, which has led to the recent spike in institutional adoption and mainstream recognition.
Notably, the second wave of crypto-based Exchange Traded Funds (ETFs) began trading this week, with Bitwise’s Solana Staking ETF (BSOL) stealing the spotlight. Additionally, the Digital Asset Treasury (DAT) trend, led by Strategy, continues to pump millions of dollars into cryptocurrencies.
“The market is changing,” the CEO claimed in his Friday X post, noting JPMorgan CEO Jamie Dimon’s recent shift in approach. Dimon has been a crypto skeptic for a long time. He calls the flagship crypto a “Ponzi scheme” and dismisses it as “useless as a pet.” Nevertheless, he recently admitted that he was wrong and that crypto, stablecoins and blockchain are ‘real’.
Is the market ‘boring’ or mature?
In response to Clemente’s post, Nic Carter declared that the sentiment shift highlights a deeper truth about the market: the space has matured significantly. He explained that crypto is now “boring” because most of the questions and uncertainties that caused much of the historical volatility have been answered.
So many open questions have been answered: are stablecoins allowed? Yes. will we get a ban? No. Are we all going to jail for writing software? No. will we be included in tradfi? Yes. Can tokens have cash flows and not be securities? Evidently. (…) There are still some unanswered questions, especially around cash flow pseudo-equity tokens, but we will probably get answers to those in the coming years.
He also argued that the crypto industry has largely been undermined as a technological substrate, leading large companies to adopt these tools, showing that “crypto natives no longer control the narrative, there are more serious companies (that don’t need tokens), there is less chaos, and the entire space has matured significantly.”
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For Carter, this means the industry has “won.” However, he noted that clarity and maturity bring less excitement, because “winning means that the inherent volatility in the space is greatly reduced! This applies to both startups and the underlying assets themselves.”
“So if you’re sad that volatility has subdued, laugh through the tears. It means we won,” he concluded.
Featured image from Unsplash.com, chart from TradingView.com