After a lengthy bear market, Ballet CEO Bobby Lee believes that the digital asset markets have entered a new “spring” season.
In a recent interview with Bloomberg Television, the crypto veteran predicts that Bitcoin’s (BTC) market cycles will likely continue to span four years.
The next halving event is anticipated to occur in April 2024, when mining rewards will be reduced, limiting the supply of newly issued Bitcoin.
“We’re finally seeing possible indicators of spring and emerging from the winter. It has been quite a while. There are four-year cycles of bull and bear markets for cryptocurrencies. And for a significant portion of last year, the bear market pushed Bitcoin as low as $16,000. It has nearly doubled and recently peaked at $31,000, so the situation is quite thrilling.”
The recent US banking crisis, according to Lee, has aided the narrative surrounding cryptocurrencies, making them a safer haven from the risks of the conventional financial system.
“[Crypto] should be regarded as a secure haven in the sense that it differs significantly from traditional fiat currency and fractional reserve banking. People are beginning to realise, as a result of the banking crisis, that when their money is in the bank, it is not always there, because it is lent out to other businesses and firms. Because of this, banks only keep a fraction of their money on hand, and no bank is genuinely immune to a bank run.
With cryptocurrency, there is the concept of self-custody, which allows you to operate as your own bank and hold it without third-party or counter-party risk. And this is what makes cryptocurrencies like Bitcoin so extraordinary.”
Lee also claims that sales at Ballet, a company that manufactures non-electronic cold storage cryptocurrency wallets, have skyrocketed in recent weeks as scepticism about the financial system increases.
While the United States may be dealing with regulatory issues in the industry, Hong Kong’s recent moves into the crypto sphere could pave the way for increased adoption of digital assets throughout Asia, according to Lee.
“I believe it’s a bit late in comparison to other regions, but I think it’s great that Hong Kong and mainland China are allowing Hong Kong to do this. This summer, I anticipate that Hong Kong’s regulators will issue official licences for exchanges to conduct business in Hong Kong; this represents a potential opportunity for Greater China and Asia as a whole.”
At the time of writing, Bitcoin is trading at $29,419, a decrease of 2.9% over the past 24 hours.
