Crypto Market Needs AI Hype Decline, Looser Fed Policy for Bull Run
The cryptocurrency market is experiencing a sluggish period, according to Spencer Hallarn, head of markets at GSR. He believes that a decrease in hype surrounding the artificial intelligence (AI) sector and a loosening of monetary policy by the U.S. Federal Reserve are necessary for a bull run in cryptocurrencies.
Currently, the AI sector is attracting most of the free capital, pushing investments away from cryptocurrencies, Hallarn notes. He thinks that Bitcoin has particular potential because alternative cryptocurrencies need to realize their promised use cases to validate their value.
The market's sluggishness is not uncommon, Hallarn states. Trading volume decreases when both price and market capitalization are low. A significant portion of what diverts attention and capital from cryptocurrencies is AI, which is the defining technological trend at the moment.