Starkiller Capital: Crypto Cycle Has Bottomed, Bitcoin and Ethereum End Bear Market

Starkiller Capital, a quantitative investment firm, announced that the crypto cycle has bottomed. This means Bitcoin and Ethereum are no longer in a bear market. The firm points to several indicators, including both cryptocurrencies being above their 200-day moving averages for the first time since the last cycle ended.

The peak-to-trough drawdowns of 54% and 70% for Bitcoin and Ethereum respectively are key metrics that suggest the end of the bear market. According to Starkiller, every prior time Bitcoin has reclaimed this level, it marked the end of the bear market.

The firm closed its entire short position last month, a decision it called the 'clearest expression of its conviction'. It expects high dispersion in the crypto market, with revenue-generating protocols like Hyperliquid Strategies (NASDAQ:PURR) outperforming assets without real economics. The gap between these two groups is expected to widen.