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▲ Bitcoin (BTC), Ethereum (ETH), Portfolio/AI Generated Image
An analysis suggests that the virtual asset market has entered a historical turning point to replicate the explosive growth of NASDAQ in the 1990s, drawing the attention of investors.
Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, analyzed the current macro situation of the virtual asset market in a video uploaded on May 3 (local time), citing remarks by David Schwartz, Ripple's Honorary Chief Technology Officer. Gambardello emphasized that while market sentiment has hit rock bottom, causing many retail investors to leave, from a macroeconomic perspective, the clearest upward structure in years has formed. Gambardello added that being a virtual asset bear now is the worst position an investor can take.
Gambardello noted that the 1996 Telecom Act laid the foundation for the internet boom, predicting that the US cryptocurrency market structure bill would be a crucial key to institutional capital inflow. Schwartz also 100% agreed with the opinion that even if the bill's content is not perfect, it will unleash massive liquidity, similar to the past Telecom Act. Just as the past Telecom Act clarified the legal boundaries between telephone and internet, attracting investment, the US cryptocurrency market structure bill is analyzed to open the way for large capital, such as pension funds, by clarifying whether virtual assets are securities and who the regulatory authorities are.
The driving forces behind the major uptrend were identified as the US cryptocurrency market structure bill, technological momentum, the readiness of institutional capital, and monetary policy support. Over the past decade, mature virtual asset infrastructure has combined with the AI productivity revolution, creating powerful synergy. In particular, productivity improvements through AI suppress inflation, providing the Federal Reserve (Fed) with justification to implement accommodative policies such as interest rate cuts. This is similar to the historical case where former Fed Chairman Alan Greenspan maintained an accommodative stance by leveraging the PC revolution.
The current position of the virtual asset market is assessed as similar to Nasdaq in the mid-1990s, before reaching the peak of the 2000 dot-com bubble. The total market capitalization of virtual assets, excluding Bitcoin (BTC), remains at approximately $1 trillion, a similar scale to its 2021 peak. Considering the significant infrastructure growth over the past five years, the market value is highly undervalued. Gambardello argued that the moment structural 'plumbing' (infrastructure) is completed, the value of virtual assets will surge explosively, replicating Nasdaq's glory.
Bitcoin is currently testing the upper trendline on the daily chart, and whether it breaks through the 200-day moving average, which is in the $83,000 to $84,000 range, will be a key signal for an uptrend. To the downside, a strong support line has formed near $73,000 to $74,000, defending against downward pressure. Understanding the macroeconomic turning point rather than getting bogged down in short-term volatility is key to maximizing profits.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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