Veteran crypto investors can easily remember the De-Fi summer, mega bull run or altszn times in the previous bull market cycles. Rather than today's problematic and unsustainable types of hype on " meme coins ", there were fundamentally strong stories behind the march of crypto.
The meme coins and the attention on that side show their negative side on the market over time. As crypto investors are fed up with the uncertainties and the willingness to form lower lows in many altcoins, they choose to gear up and get closer to the idea of crypto - based gambles on several platforms.
In today's crypto ecosystem, fundamentally strong projects have no value in the eyes of people since the dog coins, cat coins or the trend of politician meme coins can easily outperform the long term investment in a couple of candles. Yet, now we suffer from the case of draining liquidity in the markets. As the time passes, it is getting harder to find new buyers to push the prices higher in altcoins.
Global Ease to Gear Up
I see two reasons why crypto cannot move further though there is a huge potential:
1 - Political and military risks around the world. They directly hit the ecosystem in negative double-digit price actions.
2 - Financial influence of central banks and regulators. So far the majority of the cases were against the operations in crypto ecosystem. Even though they have different ideologies or technological facilities, lots of coins underwent investigations, accusations and lots of others by the SEC.
Also, even with the influence of the FED, ECB, or other central banks, the interest rates stay high because of some risks, and the markets expect an opportunity to go higher. By the fourth quarter of this year, we may see up and down moves following each other.
NVIDIA, AI, and Lack of Narratives
NVIDIA's Q1 performance beat the expectations by 5% once again. The growth of AI and the related fields seems to be the next trend in the global markets.
When we come to the AI integration in crypto, we can see GPU delegation systems such as RNDR and Clore, the AI use in launchpads and products such as ChainGPT and many other different AI sources powered by blockchain - based crypto projects.
As both new technological advancements can be integrated, the future narrative of crypto can be fueled by the power of Artificial Intelligence projects.
The astonishing performance of NVIDIA in the first quarter proves that the eyes are on this branch of technology. Over the last 5 years, an investment of $1000 would be $12,000 today with exponential growth over time.
This might be the next trigger for the whole market to rise. Time will tell us where crypto and AI ecosystem will find each other. Similar to a De-Fi summer, an AI hype can carry the whole market as it happens on NASDAQ with NVIDIA. Meanwhile, the global factors should be eligible for markets to go up as we discussed.
What do you think about the performance of AI and possible AI - based Bull market scenarios?
Share your thoughts below 👇
Hive On ✌️
Posted Using InLeo Alpha