'For Crypto, Worst is Over,' Digital Assets Expert Says

A seasoned economist and frequent cryptocurrency commentator is certain that no "sell wall" catalyst would be powerful enough to ruin an uptrend on digital assets markets.

"We're likely near the end of the lull in crypto"

The most painful periods of the ongoing cycle are in, says Ilan Solot, who is co-head of digital assets at Marex Solutions liquidity manager. The segment should be prepared for choppy markets, followed by a resumption of the uptrend and a gradual decline in Bitcoin (BTC) dominance.

In his X thread shared today, Jan. 26, 2024, Solot analyzed the possilble impacts of potential selling of GBTC's assets and the cryptocurrency funds from now-defunct services Mt. Gox and Celsius.

The overhangs look "sizable, but manageable" to the expert. Also, he recommends considering the situation when the manager of this or that "chunk" might be interested in diversifying a portfolio instead of selling it.

When it comes to GBTC liquidity, Solot estimates that the "buy-the-dip" mindset will be able to erase the potential negative effects of it. 

At the same time, the uptrend might not recover in the blink of an eye in an atmosphere of a rocketing S&P 500 index and regulatory hostility in the U.S. 

The S&P 500 jumped by over 20% in the last year; on Jan. 24, it set a new historic high over 4,903 pp.

Bitcoin ETF inflows to slow down, but no worries, expert says

Together with the uptrend recovering, the inflow in cryptocurrency spot ETFs will lose steam. However, as the capital injected in ETFs look "sticky" for the analyst, this slowdown will not affect the prospects of a rally.

As such, he remains optimistic about the long-term potential of the rally that started in 2023:

I remain very constructive about crypto this year. The superhighway is open, major overhangs are melting away, the havening is upon us, and there’s much to look forward to in the rest of the space, especially Ethereum and Solana.

As covered by U.Today previously, in July 2023, Solot forecast that Bitcoin ETF approval anticipation was shaping the BTC price rally in many ways.