Bitcoin has recently surged, surpassing the $44,000 mark for the first time in over a year and a half. Cryptocurrency analyst Scott Melker has now discussed the current state of the crypto market, opening up about the psychological aspects of market cycles.
On The Paul Barron Network, Melker noted that we may have entered the bull run with some skepticism, but the sentiment has shifted. Referring to the Wall Street cheat sheet psychology of a market cycle, he pointed out that we have moved past the disbelief phase and are now transitioning into optimism.
When asked about the current position in the market cycle, Melker suggested that we might be in the early stages, specifically between disbelief and hope. He highlighted the recent uptick in market activity and increased interest from both retail and institutional investors. Despite acknowledging potential retracements, Melker expressed hope, especially considering the substantial rise from the sub-$16,000 bottom to the current $44,000 level.
Addressing the concept of a crypto super cycle, Melker expressed skepticism, citing historical patterns and the recurring theme of overly positive predictions. He dismissed the idea of a super cycle, saying that each cycle tends to follow established market principles. While talking about the possibility of a massive surge in the six-figure range, he warned against subscribing to the notion of defying all logic and historical trends.
In response to outlandish predictions, such as Bloomberg’s statement suggesting a fresh crypto super cycle pushing Bitcoin above $500,000, Melker attributed such claims to sensationalism.
He said, “I think I talk about Bitcoin more often than most, so I really just think that this is kind of the beginning of the cycle. That doesn’t mean there won’t be huge retracements; we won’t see those 30-40% painful dips that make people believe that we’re going back down to new lows. But right now, when you bottomed at sub $16,000 and you’re pushing $44,000, it’s just absurd to call it a bear market bounce.”
