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Despite the rallies in Bitcoin and the stock market, the past three months have been the worst months for the economy since the Great Recession, maybe even earlier. Dozens of millions have become unemployed, revenues have fallen off a cliff, and there is growing social unrest as different groups address the COVID-19 pandemic in different ways.

In the face of all this, Bitwises global head of research, Matt Hougan, said in an investor letter titled May 2020: Welcome to Cryptos Fourth Era that the past six weeks have been among the most eventfuland bullishin cryptos history.

Backing the strong assertion that the past six weeks have been among Bitcoin and cryptos best, the analyst pointed to a number of trends indicating that the intrinsic values of cryptocurrencies, especially Bitcoin, have risen dramatically over this time frame.

They are as follows:

With the past six weeks being some of the most bullish ever for cryptocurrency as the analyst suggested, the pressing question of what comes next has been raised.

According to Hougan, the recent trends confirm that Bitcoin and crypto are entering their Fourth Era the fourth large market cycle that will see the very fabric of the industry change dramatically.

This was echoed by Andreessen Horowitzs Chris Dixon and Eddy Lazzarin, who postulated on May 15 that the third crypto cycle came to an end in 2019 while the fourth cycle has just begun.

Hougan predicted there will be three core trends that will define this next era:

What he didnt indicate, however, is how these Fourth Era trends will translate into movements in the value of cryptocurrencies, especially Bitcoin.

But there wasnt meant to be a price prediction as a takeaway. As Hougan indicated, the core point of his report is to illustrate that in the coming few years, cryptocurrencies will become mainstream assets and technologies:

By the end of the Fourth Era, we believe bitcoin and other cryptoassets will be treated as normal investments by most investors. They wont be owned by everyone, any more than everyone owns REITs or MLPs or tech stocks or gold, but they will be considered mainstream.

Cover Photo by Annie Spratt on Unsplash

Read more from the original source:
Fund manager: Past 6 weeks have been one of Bitcoins most bullish periods ever - CryptoSlate