Has the bull market ended? Su Zhu, co-founder of Three Arrows Capital: Buyers still exist, they are just waiting.

The co-founder of the cryptocurrency hedge fund Three Arrows Capital, Su Zhu, discussed the past, present, and future of the cryptocurrency market on the Uncommon Core podcast last week.

Has the Bull Market Ended?

In a Podcast released by Su Zhu on June 17th, he was interviewed by renowned cryptocurrency researcher Hasu. When asked if the bull market has ended, Su Zhu responded,

When Hasu inquired about whether the crypto bull market has ended, Su Zhu explained that the reason people keep asking this question is mainly due to "recency bias." People tend to believe that future events will be highly similar to recent experiences when judging the trend of developments, known as "recency bias." The market has indeed declined, and the momentum of some tokens has stagnated, leading everyone to start doubting the entire theory and calling it a bubble.

However, when you look at the total locked-in value in protocols each year, address activity, daily trading volume, and other metrics, you will find that we are still within a massive system.

"From various indicators, I believe the trajectory being adopted is still very healthy. Looking at the larger cycles, some tokens have been rising for nine consecutive months. While the pullback is harsh, it does not necessarily indicate the end of the entire market, and I think it indeed provides an entry point for those who have been on the sidelines for months, a truly usable entry opportunity that has not appeared until now."

Su Zhu concluded by saying that the bull market is definitely not over, and I believe this institutional participation offers an opportunity to enter the market... Goldman Sachs stated in their report that they will support Ethereum options and futures, and many of their clients have been claiming that this pullback is a good opportunity to enter these two products as they have not had a chance to enter the entire cycle so far.

Profits Taking at the "Shillen Point"

On the other hand, Hasu also asked Su Zhu if he was surprised by the market's sudden 40-50% drop in just a few weeks. Su Zhu believes that the May drop was due to many bearish factors simultaneously appearing in the market, such as regulatory actions in China and Elon Musk's changing attitude towards Bitcoin. Although Su Zhu does not consider these to be the main reasons for the decline, they did play a significant role, with these bearish factors becoming the "Shillen Point" for profit-taking in the market.

"Based on the above reasons, coupled with the fact that those who have been buying will think, 'Well, if I wait a bit longer, I can buy it at a lower price, so I will wait'... you will find that the market does not just keep falling, there are also rebounds, and you can see that those buyers still exist, the question is only at what price they want to buy. In the beginning and middle of this cycle, they had to buy at increasingly higher prices, and this time they finally have the opportunity to buy at a lower price than before. So, I think it's that simple, ultimately, there is still a significant amount of buying demand."