Home Coins Bitcoin (BTC) Long-Term Fundamentals Signal Robust Crypto Bull Market Fueled by Reckless Money Printing,...

Long-Term Fundamentals Signal Robust Crypto Bull Market Fueled by Reckless Money Printing, Defi


1596040331 111 Crypto Hardware Wallet Firm Ledger Hacked One Million Customer Emails

A robust cryptocurrency bull market is in the making, a Weiss Crypto Ratings analyst explained. Citing central banks’ “reckless money printing policies” and “the explosion in Defi innovation,” he sees long-term fundamentals favoring cryptocurrencies despite some short-term selloffs.

Robust Bull Market in the Making

Weiss Crypto Ratings’ Juan Villaverde explained last week that long-term fundamentals continue to favor cryptocurrency, despite some short-term selloffs. The analyst built the Technology and Adoption models that are at the core of the Weiss Crypto Ratings. He believes that two key factors will drive the next bull market: central banks’ “reckless” money printing and decentralized finance (Defi) innovation.

“The reckless money-printing policies currently pursued by most major central banks around the world is no doubt a long-term catalyst for crypto asset price appreciation,” he described. His sentiment was shared by Galaxy Digital CEO Mike Novogratz, who similarly believes that central banks’ mass money printing will drive the price of hard assets like bitcoin and gold. “We have a global money-printing orgy going on,” he previously said, adding that “Hard assets are going to be a big buy, gold and bitcoin are my two favorites.”

Another major factor that will drive the cryptocurrency bull market is Defi, Villaverde asserted. “One of the main drivers behind crypto bull markets is innovation,” he explained. “This was true in the first bull market, when Bitcoin was invented, and in the second major bull market, when Ethereum burst into the scene and enabled smart contracts and initial coin offerings.” Referring to Defi, the analyst affirmed, “We see the same enthusiasm now.”

Long-Term Fundamentals Signal Robust Crypto Bull Market Fueled by Reckless Money Printing, Defi
Total value locked into Defi projects. Source: Defi Pulse

The total value locked into Defi projects has recently grown by leaps and bounds. The value stands at $9.54 billion at the time of writing, according to Defi Pulse, a significant increase from the $7.88 billion level that news.Bitcoin.com reported in August. Currently, Uniswap is in the lead, followed by Maker, Aave, Curve, Synthetix, and Yearn.finance.

Villaverde emphasized that “the explosion in Defi innovation is also a catalyst for higher prices — in the short, medium and long term,” elaborating:

It’s against this fundamental backdrop — money-printing and Defi — that we can conclude what lies beyond this pullback is a run to higher prices for leading crypto assets. What we’ve seen so far is the new crypto bull starting to stretch its legs.

1595889402 943 Americans to Buy Bitcoin With Their Second Stimulus Checks After1595858606 623 3iq Files IPO for Ether Fund to Trade on Canadian

Although there were some short-term selloffs last week, Villaverde affirmed that they are in line with his model, which warned of a pullback between the second half of August and early September. Most cryptocurrencies are still trading well below the all-time highs established between December 2017 and January 2018, the analyst pointed out,” adding:

Looking beyond short-term gyrations, we continue to see a robust bull market in the making.

Do you agree with this analysis? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Defi Pulse

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
473FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,576FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.17
GBP
1.29
CHF
1.08
NOK
0.11
JPY
0.01
CAD
0.75
AUD
0.71

Most Popular

Venezuela sees its first Blockstream Bitcoin satellite node

A Bitcoin services startup based in South America has just launched the first Bitcoin node connected to the Blockstream satellite network within Venezuela.According...

YFI founder’s incomplete DeFi protocol Eminence exploited, attacker drained $15M and then returned $8M

Eminence.Finance, the unfinished decentralized finance (DeFi) protocol by Yearn.Finance (YFI) founder Andre Cronje, was exploited Monday night. The attacker drained $15 million from Eminence,...

Blockchain-based fantasy soccer game Sorare signs on Paris Saint-Germain

French soccer club Paris Saint-Germain hasn’t dropped the blockchain baton just yet, with the club now set to issue player collectibles as rare tokens.PSG...

Bitcoin Miner Maker Ebang Narrows First Half Loss To $7 Million, as Covid-19 Hit Demand

Ebang International Holdings Inc., the Chinese maker of bitcoin mining hardware, reported a net loss of $6.96 million during the first six...
bitcoin
Bitcoin (BTC) $ 10,769.39
ethereum
Ethereum (ETH) $ 357.27
ripple
XRP (XRP) $ 0.245753
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 227.69
bitcoin-cash-sv
Bitcoin SV (BSV) $ 169.42
litecoin
Litecoin (LTC) $ 45.54
eos
EOS (EOS) $ 2.58
binancecoin
Binance Coin (BNB) $ 28.59
okb
OKB (OKB) $ 6.14
tezos
Tezos (XTZ) $ 2.27
leo-token
LEO Token (LEO) $ 1.26
cardano
Cardano (ADA) $ 0.102558
monero
Monero (XMR) $ 96.72
stellar
Stellar (XLM) $ 0.074773
chainlink
Chainlink (LINK) $ 10.15
huobi-token
Huobi Token (HT) $ 4.64
tron
TRON (TRX) $ 0.026347
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 67.77
neo
NEO (NEO) $ 20.03
iota
IOTA (MIOTA) $ 0.275471
nem
NEM (XEM) $ 0.119050
zcash
Zcash (ZEC) $ 57.30
maker
Maker (MKR) $ 519.81
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 5.44
vechain
VeChain (VET) $ 0.012895
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 3.67
kucoin-shares
KuCoin Shares (KCS) $ 0.885226
waves
Waves (WAVES) $ 2.44