HomeCryptoEarly Crypto Investor Erik Voorhees Says Bitcoin’s Next Bull Market Will Start When That Happens
Early Crypto Investor Erik Voorhees Says Bitcoin’s Next Bull Market Will Start When That Happens
January 4, 2023
The next bull market could come anytime between this year and 2026, cryptocurrency veteran Erik Voorhees has suggested, but it will require some changes in the macro environment, as well as people’s minds.
Voorhees, who is the founder and CEO of the cryptocurrency exchange Shape shiftwas a guest on the Bankless podcast episode released on January 2.
Responding to a question about when we’d see another bull run and all-time highs, Voorhees joked that it wouldn’t be 10 years, adding that he often talks to his “crypto OG” buddies over BBQs when the markets would turn around – but that they are always wrong.
He stated, however, that,
“If it takes 10 years for the bull market to happen, it probably all failed. […] I imagine that happens sometimes in the next 6 months or 3 years.”
Some things have to happen for the bull to come back, Voorhees suggested. There is also a certain amount of time needed “for people’s minds to start changing and speculative cycles to return.”
The CEO stated that,
“It also has a lot to do with the macro environment. So as long as interest rates are kept high, monetary conditions are tighter, it will be a headwind. But […] that will start to change from early to mid next year. So, I wouldn’t be surprised if bitcoin is at around 40,000 by the summer, it wouldn’t surprise me at all. And that’s about 2.5x from here, so that’s a big comeback.”
Bull and bear market lessons to keep in mind
Voorhees had some lessons and caveats to share about both bull and bear markets – some common denominators seen every time during every cycle.
Not unique to cryptocurrencies, he said, but “when the upside occurs, people’s skepticism and judgment fall too low” and they’re willing to go along with anything. That’s the moment “all the stupid ideas get as much money as the good ones, there is no discretion and everyone makes money by doing everything”.
Therefore, Voorhees cautioned that,
“During a bull market, remembering to stay sane means [asking] yourself if this thing is actually useful or is it just stupid. […] Don’t follow the crowd, because they will enter everything.”
Meanwhile, in the bear market, people are “too bearish and dismiss the whole thing.” The technology didn’t suddenly change between bull and bear markets, it will work the same way in both, which means that it is user opinion that turns negative.
The bear market’s advice would be to buy and build, but also to “just remember to live your life, cryptocurrencies aren’t everything,” he said.
Voorhees warned people not to lose the forest for the trees, saying what we are seeing right now is a revolution. He said:
“Take a step back and be proud of what you’re a part of. [During] no revolution that worked [were] all the people confident that it would work. You step forward in uncertainty all the while, and then one day you might wake up and realize “oh that works, but I missed it all because I was so worried it wasn’t happening.” Face it, you’re in the middle of the revolution right now: polar bear market – you’re in the middle of that. […] So while you’re here, don’t let it pass without that acknowledgment.”
So the most basic lesson in both markets is to stay in the middle by checking your perception of things and looking at the bigger picture, instead of going to extremes.
You can watch the full interview here:
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