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 Claims the ‘Next Bear Market Will Not Be Like the Last One’
One thing is for sure, cryptocurrency investors are fearful of a full-on bear market like the past two crypto winters that shaved digital currency prices by more than 80% in value after each top. Currently, anywhere between 25% to 30% of the value since the crypto price highs on November 10, have been lost and bearish sentiment has put pressure on the crypto economy as a whole. However, despite the 30% drawdown in market values, Multicoin Capital’s managing partner Kyle Samani shared his thoughts in a recent Twitter thread published 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 remarked that these days, it is clearly evident that tech crypto dominates and he says “there are still lots of people who just think about BTC as an inflation hedge, but they represent an increasingly small [percentage] of press, social media, conference speaking, etc.” The Multicoin Capital executive 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 a Vast Amount of Capital out There That ‘Will Never Believe in Bitcoin’ — ‘Tech Money Doesn’t Care About 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’s possible that crypto is still a few years too early from truly breaking into the mainstream,” Samani noted on Sunday. “But I think at this point, that no longer matters. The train has left the station: all of the tech builders and investors have underwritten tech crypto as having a meaningful probability of reshaping commerce, finance, and the fabric of society at large. And they are comfortable meeting on that and holding for years,” the Multicoin Capital executive said.
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 Flipped, It’s Pretty Much Game Over for Bitcoin’
Because “everyone knows that software is eating the world,” Samani predicts SOL and ETH demand will rise. He highlighted that everyone wants to be a part of the “next big tech wave, and crypto is credibly one of those waves.” The managing partner at Multicoin Capital further added that he believes “BTC will get flipped in the medium term.” He thinks as a tidal wave of tech money comes into the crypto economy, that 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 those statements, Samani surmised his theory by adding that the next bear market will not look like the last and stressed that the “decoupling is real.” “When BTC gets flipped, things get *really* interesting,” the Multicoin Capital executive concluded.
What do you think about the Multicoin Capital executive Kyle Samani’s opinions about the bear market and certain cryptos outperforming bitcoin? Let us know what you think about this subject in the comments section below.
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