The Predictable Unpredictability Of Cryptocurrency: Investors Understand The Cycles Of Digital Assets Rhythms

Raoul Paul, a seasoned crypto investor, has recently shed light on the cyclical nature of the crypto markets. In a recent interview with Scott Melker, another notable investor, Paul painted a vivid picture of these cycles, likening them to the changing seasons.


1. Crypto Cycles Decoded:

  • Raoul Paul, an experienced crypto investor, discusses the cyclical nature of crypto markets in an interview with Scott Melker.
  • Describes crypto cycles as analogous to changing seasons, starting with a ‘crypto spring’ leading into phases like altcoin season, DeFi season, explosive growth, and a harsh crypto winter.
  • Highlights Ethereum’s pivotal role, outperforming Bitcoin during periods of heightened global liquidity.

2. Recurring Patterns:

  • Paul notes recurring patterns defining the crypto landscape, emphasizing the perpetual nature of DeFi season.
  • Identifies cycles culminating in “ridiculous tail events” such as NFT frenzies, meme coins, and dog coins, where significant wealth is made and recycled.

3. Market Turbulence After Matrixport’s Report:

  • The crypto market experiences turbulence after a controversial report from Matrixport titled “Why the SEC will REJECT Bitcoin Spot ETFs again.”
  • The report sparks bearish sentiment, leading to a significant market downturn with Bitcoin and Ethereum both plunging over 6%.

4. Recovery and Market Response:

  • Despite the downturn, the market shows signs of recovery with Bitcoin reclaiming its $43,000 mark, registering a 2.7% increase, and Ethereum climbing above the $2200 threshold.
  • Bitcoin’s price is depicted as moving sideways on the 30-minute chart.

5. Matrixport’s Response to Backlash:

  • Co-founder Jihan Wu addresses community concerns following the Matrixport report, attempting to dispel allegations of market manipulation.
  • Wu emphasizes market volatility caused by the anticipation of Spot Bitcoin ETFs and asserts that Matrixport operates based on public information without insider advantage.
  • Despite Wu’s clarifications, skepticism remains within the crypto community, with many wary and unwilling to accept Wu’s explanation.

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