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Bitcoin's four-year market cycle isn't dead — Xapo Bank CEO

According to Xapo Bank CEO Seamus Rocca that the risk of a prolonged bear market is still very real and does not need a “cataclysmic” event to trigger it. Things as simple as a general slowdown in news, developments, or routine portfolio rebalancing could cause the next market-wide downturn.

He added:

“We all want to think that Bitcoin is an inflation hedge, and I believe that it will be that inflation hedge one day. But I'm not sure we're there yet. I still see it very much as a risk-on asset. At least that correlation between Bitcoin, the S&P, and stocks is still very much there.”

The contagion effect could be as simple as there's no new news in the market,” causing the crypto sector to “run out of steam,” in an organic, drawn-out process, the CEO added.