Harry Yeh, founder and managing partner of Quantum Fintech Group, has suggested that the current cryptocurrency trends indicate the sector is entering a supercycle mainly due to activity around stablecoins.
Speaking to Bloomberg Markets, Yeh acknowledged that the cryptocurrency market is in its infancy stages but still under a unique stablecoin bull cycle despite the current volatility.
Yeh believes that the current bull market differs from the previous one due to the increasing role of stablecoins that he noted are leading mainstream adoption.
Yeh stated that stablecoins are playing a key role in crypto payments, suggesting that they are addressing ‘inefficiency’ shortcomings by assets like Bitcoin and Ethereum.
“Cryptocurrencies are in a teething stage. However, we are starting to see something very similar to the 2017 bull market. We are definitely in the middle of a bull market, but this one gets a little bit more unique than the last bull market. There weren’t any stablecoins, but there’s a lot of stablecoins in this current bull market. This could be the supercycle mainstream adoption of cryptocurrencies because stablecoins are starting to happen,” said Yeh.
‘Bitcoin to trade at $400,000 in 12 months’
Despite Bitcoin beginning the year on a losing streak, Yeh expressed bullishness for the asset in the next 12 months, projecting a price target of $400,000. He noted that the projection is guided by the Federal Reserve activity, where he ruled out any near-term interest rate hikes.
According to the managing partner, the Fed will likely continue money printing, and Bitcoin stands out as a hedge.
By press time, Bitcoin was trading at $41,600, having lost over 10% from the start of the year.
Bitcoin YTD price chart. Source: CoinMarketCap
As reported earlier by Finbold, Yeh stated that weakening of the dollar will likely propel Bitcoin’s growth since the asset is a crucial alternative. He maintained that investors should not be concerned about any possible market crash at this point.
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