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▲ Bitcoin (BTC) decline, Dollar (USD)/ChatGPT generated image
While Bitcoin (BTC) and the cryptocurrency market seem to be stuck in a frustrating slump, it has been argued that for investors who look at long-term growth rates and the spread of tokenization, the current price weakness is actually the simplest buying opportunity.
Crypto-focused YouTube channel MoneyZG, in a video uploaded on May 31 (local time), diagnosed that while Bitcoin and cryptocurrencies are relatively sluggish in the current market, this period should be seen not as fear but as an advantageous 'easy mode' for long-term investors. The host explained that Bitcoin is a globally liquid asset traded 24/7, and the key is to compare long-term growth rates with the current price position rather than short-term price fluctuations.
MoneyZG revealed that Bitcoin's growth rate, based on its 200-week moving average, ranged from 20% to 40% annually. The host stated that Bitcoin could grow by 25% annually over the next 10 years, and if this trend continues, a $1 million Bitcoin could be possible within 10 to 12 years. He cited NASDAQ's 18% to 20% annual growth over the past decade as a comparative basis, suggesting that Bitcoin still has significant long-term growth potential.
The reason the host views the current period as 'easy mode' is that Bitcoin's price is near or below its long-term trendline. He stated that when prices are below the trend, there's no need to make big decisions; one can simply buy slowly. Conversely, he explained that in a bull market where prices rise excessively above the trend, decisions become more difficult as one has to consider whether to sell, continue holding, or move to other assets like the S&P 500 or NASDAQ.
The video also noted that short-term investors leaving the market when prices are weak is an opportunity for long-term investors. The host stated, "Tourists don't make money," emphasizing that investors who do not leave the market during bear or sideways markets will earn excess returns in the next bull market. He added that when the next bull run comes, Bitcoin could move 200-300%, but from then on, 'hard mode' begins, requiring deliberation on selling and asset reallocation.
MoneyZG presented Artificial Intelligence (AI) and Bitcoin as key assets from a 10 to 15-year long-term investment perspective. The host stated that AI is a future industry where demand exceeds supply, and Bitcoin is an asset with liquidity and growth potential, adding that he sees no alternative investments that could replace these two areas. He explained that factors such as easing war risks, a low cyclical position of the Purchasing Managers' Index (PMI), large-scale investments and facility expansions in the US, and the potential for falling oil prices could support a rebound in risk assets.
Regarding the IBIT outflows from BlackRock, MoneyZG cautioned against excessive pessimism. MoneyZG noted that IBIT is still among the top 2% of all ETFs by net inflow, viewing inflows and outflows as natural movements in mature financial products. Furthermore, with the ongoing trend of tokenization including US Treasury bonds, strategy funds, stocks, and real estate tokens, and the spread of large-scale tokenized government bonds on Ethereum (ETH) and BNB Chain, the current environment of weak prices but growing infrastructure and demand was assessed as an advantageous period for long-term investors.
*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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