Биткойн на пороге тихого IPO: эксперты предсказывают рост после консолидации Translation: Bitcoin on the verge of silent IPO: experts predict growth after consolidation

The current sideways movement of the leading cryptocurrency signifies the onset of a «silent IPO» phase for the asset. This was noted by Bitwise’s Chief Investment Officer, Matt Hougan.

He referred to research by macroeconomist Jordi Visser, who analyzed the reasons behind Bitcoin’s sluggish dynamics despite substantial inflows into ETFs, significant regulatory advancements, and increasing institutional demand.

According to Visser’s interpretation, a «silent IPO» indicates a period of stagnation lasting between 8 to 16 months, after which the price typically begins to rise.

«Sideways movement doesn’t necessarily imply something is amiss with the company. This often occurs when founders and early employees cash out their holdings. Those who took a substantial risk on the startup when it was extremely uncertain have seen a return on their investment and are now reaping 100-fold profits,» Hougan drew a parallel with Bitcoin.

He believes that only after achieving a certain equilibrium between selling and buying will the asset resume its upward trajectory. However, some market participants misunderstand the situation and panic, liquidating their positions.

«Early selling by investors doesn’t signify the end of the asset’s story. It’s merely a new phase,» emphasized Bitwise’s CIO.

Unlike traditional companies, which must maintain stable revenue post-IPO for healthy dynamics, Bitcoin «doesn’t need to prove anything,» Hougan noted.

In his view, after the early investors’ sell-off concludes, the only condition for Bitcoin’s market capitalization growth from $2.5 trillion to the gold standard of $25 trillion will be widespread adoption.

«If we look at the long term, Bitcoin’s decline is a serendipitous opportunity. I see it as a chance to acquire more coins before their prices rise again,» the expert added.

As digital gold transitions from the hands of early supporters to institutional investors and evolves as a technology, its price is no longer subjected to the same existential risks faced a decade ago, highlighted Hougan.

Since the inception of spot Bitcoin ETFs in January 2014, the asset’s volatility has significantly decreased. However, along with that, so has the yield.

Yet, lower volatility translates to increased safety as a long-term investment.

«The days of Bitcoin making up just 1% of portfolios are over. Investors should increasingly consider 5% as a starting point,» he concluded.

It’s important to note that experts have regarded the correction of the leading cryptocurrency below $100,000 as relatively moderate in light of the current cycle. The price drop aligns well with historical patterns.