While the crypto economy has tumbled in value during the last two weeks, the managing partner at Multicoin Capital, Kyle Samani, recently shared his views on why he thinks the “next bear market will not be like the last one.” In fact, Samani remarks that there may not even be “a bear market at all.”
Multicoin Capital Executive Says “Next Bear Market Won’t Be Like Last”
One thing is for sure, cryptocurrency investors fear a full bear market like the last two crypto winters which have slashed digital currency prices by over 80% in value after each peak. Currently, between 25% and 30% of the value since the crypto price peaks of November 10 has been lost and bearish sentiment has put pressure on the crypto economy as a whole. However, despite the 30% drop in market values, Multicoin Capital’s managing partner Kyle Samani shared his thoughts in a recent Twitter thread posted two days ago.
“Why the next bear market will not be like the last one,” Samani said. “And in fact, we may not have a bear market at all. Or we may have half a bear market, depending on your perspective.” Samani further says that broadly speaking, there are two types of people in crypto: “money crypto” and “tech crypto.” In recent times, or since 2017, Samani claims that the tech crypto group has dominated. “Since 2017, tech crypto has come to dominate the zeitgeist,” Samani stressed.
Samani remark that these days it is clearly evident that crypto technology dominates and he says “there are still a lot of people who just think of BTC as a hedge against inflation, but they are a smaller and smaller number [percentage] press, social media, conferences, etc. The Executive of Multicoin Capital added:
Money crypto people think primarily about interest rates, the politicization of central banks, etc. Tech people care about building. Inevitably, politicians/CBs will do stuff that is bad for BTC as an inflation hedge. Whether that’s banning it (or trying to), or just raising rates, or whatever. There is a natural ebb and flow to the actions of these institutions, and BTC-USD will naturally respond to it.
Samani insists on huge amount of capital that “will never believe in Bitcoin” – “Tech money doesn’t care about the macro”
Samani further stated that tech people don’t care about those types of things and that “they just want to build cool new things.” If bitcoin dropped by 50% because of government enforcements, Samani claims tech people will continue to build and investors will “invest in tech crypto.”
“It is possible that crypto is still a few years too early to really break into the mainstream,” Samani Noted on Sunday. “But I think at this point it doesn’t matter anymore. The train left the station: All builders and tech investors have endorsed tech crypto as having a significant likelihood of reshaping commerce, finance, and the fabric of society as a whole. And they’re comfortable getting together about it and sticking around for years to come, ”said the CEO of Multicoin Capital.
Samani insists that there is a vast amount of capital out there that “will never believe in BTC because they don’t believe in owning non-productive assets.” The crypto advocate believes that if there is a bear market, he expects solana (SOL) and ethereum (ETH) to outperform bitcoin (BTC) significantly. “The tech money doesn’t care about macro,” Samani opined. “They just want to be long [on] the stuff that they think is going to change the world.”
Samani predicts “once Bitcoin is returned, it’s pretty much the end of the game for Bitcoin”
Because “everyone knows that software devours the world,” Samani predicts that the demand for SOL and ETH will increase. He pointed out that everyone wants to be a part of the “next big tech wave, and crypto is presumably one of those waves.” The managing partner of Multicoin Capital added that he believes “BTC will be reversed in the medium term”. He believes that as a tidal wave of tech money hits the crypto economy, it will crowd out the macro money group of people. Samani added:
Once BTC is flipped, it’s pretty much game over for BTC. A large part of the value prop of BTC is that it’s the largest and most liquid. Once those stop being true, it has even less to offer. As people recognize that this is becoming true, a lot of the money in BTC will rotate out and into SOL and ETH and other more productive names.
Following these statements, Samani conjectured his theory adding that the next bear market will not look like the last and stressed that the “decoupling is real”. “When BTC is reversed, things get * really * interesting,” the CEO of Multicoin Capital concluded.
