Harry Yeh, founder and managing partner of Quantum Fintech Group, has suggested that the current cryptocurrency trends indicate the sector is entering a supercycle mainly due to activity around stablecoins.
Speaking to Bloomberg Markets, Yeh acknowledged that the cryptocurrency market is in its infancy stages, but it’s under a unique stablecoin bull cycle even though the current volatility.
Yeh believes that the current bull market is different than the previous one because of the increased role of stable coins which he says are leading mainstream adoption. Yeh also notes that stable coins are playing a key role in the crypto payment system, suggesting that they’re addressing inefficiency issues of Bitcoin and Ethereum.
“Cryptocurrencies are in a teething stage. However, we are starting to see something very similar to the 2017 bull market. We are definitely in the middle of a bull market, but this one gets a little bit more unique than the last bull market. There weren’t any stablecoins, but there’s a lot of stablecoins in this current bull market. This could be the supercycle mainstream adoption of cryptocurrencies because stablecoins are starting to happen.”
Harry Yeh
‘Bitcoin could reach $400,000 in the next year’
Despite the recent bear run, the future for Bitcoin looks bright. Yeh has forecasted a $400,000 price target for the coin in the next year, citing the Fed’s near-term rate cut cycle as one of his key reasons.
According to the managing partner, the Federal Reserve will likely continue to print money and Bitcoin stands out as a hedge.
As Bitcoin reached $41,600 on Friday, and as it continues to fall in value, some analysts see this as the worst crash for Bitcoin since its debut. However, if the recent trend continues, it is likely to be only a short-term hiccup.
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