Xapo Bank CEO: Prolonged Bitcoin Bear Markets Still a Threat
The four-year Bitcoin market cycle of new all-time highs followed by significant corrections remains intact, according to Xapo Bank CEO Seamus Rocca. He warns that a prolonged bear market could arise from simple factors like a slowdown in news or routine portfolio rebalancing, rather than a major event. Rocca emphasizes that Bitcoin is still viewed as a risk-on asset, maintaining a correlation with the S&P and stocks. Despite some beliefs that institutional involvement has altered the cyclical nature of Bitcoin, Rocca disagrees, asserting that human psychology drives market cycles. Analysts from various sectors echo this sentiment, suggesting that traditional boom and bust patterns will persist. Concerns exist regarding overleveraged Bitcoin treasury companies potentially triggering a bear market, although limited contagion may occur if these companies primarily use equity for financing.
