As crypto traders debate which speculative narrative will drive the next bull run, one analyst argues the answer might be more obvious and lie in the largest market cap cryptocurrency itself.
“The general feeling is that this coming bull run will be all about Bitcoin and its layer 2s,” Quantum Economics founder and crypto analyst Mati Greenspan told Cointelegraph.
Bitcoin ‘first narrative,’ with $100K looming
“The Bitcoin first narrative has been building like a snowball ever since Taproot was implemented,” Greenspan added. The Taproot upgrade took place in November 2021 and laid the foundation for accelerating decentralized financial services through the Bitcoin network.
He pointed out that over the past twelve months, “brand new possibilities have opened up for DeFi and NFTs on the Bitcoin main chain.”
Greenspan believes that a $100,000 Bitcoin price in 2024 is “definitely possible,” particularly if a pro-crypto presidential candidate is elected in November:
“At this point, it’s just waiting for confirmation of a Trump victory, and then off to the races.”
Bitcoin is trading at $68,553 at the time of publication. Source: TradingView
It comes after Bitcoin millionaire Erik Finman told Cointelegraph “if Trump wins, I believe Bitcoin could hit $100,000 during his second term.”
However, Greenspan is not so optimistic about Ethereum. “It’s difficult to make a bullish case for Ethereum when there are so many generally accepted market competitors right now that are cheaper and more scalable,” Greenspan explained.
On Oct. 20, Cointelegraph reported that Bitcoin’s market capitalization surpassed Ethereum’s by over $1 trillion.
Market participants generally expect bull runs to start with Bitcoin reaching new all-time highs. Once Bitcoin is perceived to be topped out among traders, capital has typically rotated into altcoins and more speculative tokens as traders chase more significant returns.
Related: Bitcoin analyst: $100K BTC price by February’ completely within reason’
Skepticism surrounds the future of AI memecoins
When it comes to memecoins, Greenspan is somewhat skeptical. When asked about the recent excitment over Goatseus Maximus (GOAT), which amassed a $688 million market capitalization 11 days after its launch on Oct. 14 following an endorsement from the AI bot Truty Terminal.
“They might do well, and they might not,” Greenspan claimed.
“I get that markets can be volatile in the short term, but it’ll be a hit-and-miss as far as which ones. Long-term investors don’t tend to take these things seriously until they’ve at least reached a critical mass,” he added.
Greenspan suggests investors interested in speculative tokens during the “hype” phase to consider, “What does the coin do?” and to question, “Why can’t Bitcoin, Ethereum, or another layer 1 achieve its goals?”
He also highlighted the importance of researching the project’s development team and the factors driving its supply and demand dynamics.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.