Despite Bitcoin maintaining a bullish structure, sentiment in the broader cryptocurrency market is at one of its lowest points, according to LunarCrush CEO Joe Vezzani. Speaking with TheStreet Roundtable’s Rob Nelson, Vezzani explained that while Bitcoin has shown resilience, the sentiment surrounding it and the rest of the altcoin market remains weak, reflecting the market’s ongoing uncertainty.
“Sentiment is extremely low in the market right now on Bitcoin and then also on the rest of the altcoin market,” Vezzani said, noting that many investors still tend to make decisions based on emotional reactions—buying when prices are high and selling in panic when they drop.
The Emotional Investor and the Rule of Buying on Red Days
Vezzani emphasized the importance of maintaining a level-headed approach, offering a piece of advice for investors: “I always tell people just have a rule of thumb to only buy on red days. You’re always going to do better.” This approach suggests that buying during downturns, when prices are lower, typically yields better returns compared to purchasing during periods of price surges, where emotional decision-making can drive inflated prices.
Bitcoin’s Role as a Risk Asset
Vezzani pointed out that despite its strong structure, Bitcoin continues to behave like a risk asset, moving in tandem with broader macroeconomic factors, such as interest rates and trade tariffs. “Bitcoin’s traded like a little bit of a beta as a big tech stock for a long time,” he said, suggesting that while Bitcoin is viewed as a potentially high-reward asset, it is still closely tied to traditional market influences, rather than being a fully decoupled macro hedge.
However, he expressed optimism about Bitcoin’s future, noting a key development that could alter the asset’s trajectory.
Regulatory Tailwinds and Institutional Entry
Vezzani believes that Bitcoin is on the cusp of a significant shift, with what he describes as “regulatory tailwinds” set to take the market in a more positive direction. “We finally have regulatory tailwinds. Bitcoin now has never traded in a macro-positive and regulatory-positive environment. We will see that here in the next year,” he said. This anticipated shift in regulation could provide the necessary boost for Bitcoin to further solidify its role as a mainstream asset.
He also highlighted that institutional investors, including sovereign wealth funds, have already begun entering the crypto market. “Retail’s going to be left behind if they’re not making a move right now,” Vezzani added, suggesting that those who hesitate may miss out on significant opportunities in the coming months as more institutional capital flows into the space.
Altcoin Market Struggles
While Bitcoin remains in a bullish structure, the altcoin market is facing significant struggles. Kelly Kellam, CEO of BitLab Academy, noted the stark contrast between Bitcoin’s strength and the difficulties experienced by many altcoins. “89 out of the top 100 coins in the last 90 days are down,” Kellam said, highlighting that many altcoins have seen drastic declines, with some down 40%, 50%, and even 70%.
In contrast, Bitcoin has managed to retain its bullish momentum, offering a potential safe haven in an otherwise tumultuous market.
Opportunities in the Current Market
Despite the ongoing low sentiment, Vezzani cautioned that the crypto market can shift rapidly. “You could have three weeks of just an absolute tear in price, and you completely missed out,” he warned, indicating the volatility and quick movements inherent to the crypto space. His advice for those with available capital? “If you have capital left, it’s probably a good time to start DCA (dollar-cost averaging).” By gradually purchasing Bitcoin at different price points, investors can mitigate risk while positioning themselves to take advantage of future market movements.
In summary, while market sentiment is low and many investors remain cautious, the ongoing regulatory developments and the entry of institutional players suggest that Bitcoin could soon experience more stability and growth. For those in the crypto market, Vezzani’s advice is to stay strategic and consider dollar-cost averaging to position themselves for potential future gains.
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