The coming crypto bull run ‘an Asian story’
Australian venture capitalist and founder of MHC Digital Group, Mark Carnegie, is optimistic about bitcoin's potential for a bullish trend, while believing that Asia will be the real force driving the market beyond the exchange-traded fund (ETF) approval hype in the United States.
$50,000 bitcoin retest
In a recent interview with CNBC, Carnegie expressed his belief that bitcoin is "clearly primed for a bit of a run and a retest to $50,000." The bitcoin unit price stood at around $43,600 at the time of the interview. At the time of writing, it’s weighing in at $46,773. While there’s likely to be considerable resistance in the leading cryptocurrency getting past the psychologically important $50,000 level, the digital asset is certainly heading in the direction that Carnegie had predicted.
Looking ahead, Carnegie shared his short-to-medium-term outlook, stating:
"So my feeling is short term, long, medium term, which is, you know, 30 to 90 days, probably a retrace." This suggests that Carnegie anticipates a positive trajectory for bitcoin in the coming months, likely as an initial response to a spot bitcoin ETF approval in the U.S.
Last week a report from Singapore-based digital asset financial services firm Matrixport speculated that spot bitcoin ETF applications would be rejected as they have been over the past few years.
Market risk factors
However, he also voiced concerns about the current state of the U.S. equity markets and potential recession indicators.
Reflecting on the recent miss on payrolls, Carnegie commented:
"I feel like that miss on payrolls last week makes me feel like there's a big flip. And everyone's going to start panicking about a recession."
Despite the uncertainty in traditional markets, Carnegie remains optimistic about bitcoin's performance. When asked about the specific impact on cryptocurrencies, he admitted, "How's that going to affect crypto? I don't really know."
In a blog post published last Friday, Arthur Hayes, the CIO of Hong Kong-based family office Maelstrom, similarly points to market turbulence in the short to medium term while remaining bullish on bitcoin over the longer term.
An Asia-powered bull run
Carnegie highlighted the influence of spot bitcoin ETFs and suggested inflows, noting that there are more net flows from Asia than the U.S. He stated:
“You could easily see $50 - $100 billion in net new flow out of Asia this year, and if that happens..!”
He mentioned the anticipation of approximately $5 billion waiting to come into the U.S., characterizing it as substantial but perhaps not as impactful as expected in the short term. "It's an Asian story this time round,” Carnegie claimed.
Carnegie also expressed a preference for bitcoin over Ethereum in the current financial landscape. He stated:
"Bitcoin feels more solid to me at the moment. So on a relative basis, I can talk like I can talk to you. I feel like for the next little while, Bitcoin feels better to me than Ethereum."
Mark Carnegie's positive outlook on bitcoin's potential rally to $50,000 aligns with his preference for bitcoin over Ethereum in the current market conditions, despite concerns about the broader economic landscape.
