In a recent conversation with Cointelegraph, veteran macro investor Dan Tapiero shared his insights on navigating the cryptocurrency market during a bear phase. He emphasized the importance of rational judgment and a broader perspective rather than being swayed by fear and negativity.
Tapiero is Managing Partner and CEO at 10T Holdings, which is a growth equity fund focused on investing in mid-to-late-stage digital asset ecosystem (DAE) companies. Portfolio companies include Ledger, Nova Labs (which develops the Helium blockchain), and Animoca Brands.
According to Cointelegraph’s report, Tapiero highlighted the growth of the crypto space beyond just the prices of Bitcoin and Ethereum. He pointed out that several companies within the digital asset ecosystem performed better last year, despite the significant drop in the prices of Bitcoin and Ethereum. This, he suggests, indicates the resilience and potential of the broader crypto market, even in the face of price volatility.
He also drew attention to sectors within the digital asset ecosystem that are not correlated. For instance, $8 trillion in stablecoins were settled in 2022, the total number of nonfungible tokens (NFTs) minted crossed the one trillion mark, and blockchain gaming experienced significant growth. These sectors were non-existent just three years ago, illustrating the rapid innovation and expansion within the crypto industry.
Tapiero further noted the developments in the decentralized finance (DeFi) space. Despite the locked value in DeFi dropping from $200 billion to $50 billion, it was also at zero a couple of years ago. He believes that as the crypto space broadens, its value also increases, offering diverse opportunities for investors.
When asked about the impact of community sentiments on his strategies, Tapiero stated that while he can sense these feelings, he does not let them influence his decisions. He views crypto as a market similar to other currencies, bonds, or stocks and emphasizes the importance of setting emotions aside to make rational judgments.
Looking ahead, Tapiero believes that the bear phase is over and anticipates an “explosive” and broad bull market. He predicts new highs for the crypto market in the second half of 2024 or 2025, possibly reaching a market capitalization of 6 to 8 trillion:
“The bear phase is finished … I think we’ll see new highs probably in the second half of 2024, 2025. And I think in that bull phase, we’ll probably hit up to 6 to 8 trillion [crypto market capitalization].“