Samani predicts a different Bear Market, Argues that BTC will be outdone by SOL and ETH

Managing Partner at Multicoin Capital, Kyle Samani, recently theorized that the  “next bear market will not be like the last one.”

As crypto investors reel from the recent crashes Samani shared his thoughts on the matter in a recent Twitter thread. Currently, the crypto markets have lost values between 25-30% since their highs on November 10th.

“There are still lots of people who just think about BTC as an inflation hedge, but they represent an increasingly small [percentage] of [the] press, social media, conference speaking, etc. Money crypto people think primarily about interest rates, the politicization of central banks, etc. Tech people care about [the] building. Inevitably, politicians/CBs will do stuff that is bad for BTC as an inflation hedge. Whether that’s banning it (or trying to), or just raising rates, or whatever. There is a natural ebb and flow to the actions of these institutions, and BTC-USD will naturally respond to it,” said Samani.

He adds that ‘tech people’ don’t necessarily care about government activities concerning crypto. Samani claims that people will continue to develop and upgrade crypto and investors will continue to invest even if BTC drops by 50% due to government regulations.

“It’s possible that crypto is still a few years too early from truly breaking into the mainstream. But I think at this point, that no longer matters. The train has left the station: all of the tech builders and investors have underwritten tech crypto as having a meaningful probability of reshaping commerce, finance, and the fabric of society at large. And they are comfortable meeting on that and holding for years,” said the Multicoin Capital executive.

Additionally, he argues that if there is a Bear Market cryptocurrencies such as Solana [SOL] and Ethereum [ETH] will outperform Bitcoin.  “The tech money doesn’t care about macro,” Samani opined. “They just want to belong [to] the stuff that they think is going to change the world.”

“Once BTC is flipped, it’s pretty much game over for BTC. A large part of the value prop of BTC is that it’s the largest and most liquid. Once those stop being true, it has even less to offer. As people recognize that this is becoming true, a lot of the money in BTC will rotate out and into SOL and ETH and other more productive names.”

Source: Bitcoin News