Bitcoin, preparing to replicate Nasdaq's explosive rise...Schwartz "90s dot-com boom to return"

▲ Bitcoin (BTC), Ethereum (ETH), Portfolio/AI generated image

Investors' attention is focused on the virtual asset market, as analysis suggests it has entered a historical turning point ready to replicate the explosive growth of NASDAQ in the 1990s.

Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, analyzed the current macro situation of the virtual asset market in a video uploaded on May 3 (local time), quoting remarks by David Schwartz, Honorary Chief Technology Officer of Ripple. Gambardello emphasized that while market sentiment is at its worst and many retail investors have left, from a macro perspective, the clearest bullish structure in years has formed. Gambardello added that being a virtual asset bear right now is the worst position an investor can take.

Gambardello noted that the 1996 Telecom Act laid the foundation for the internet boom and predicted that the US cryptocurrency market structure bill would be the decisive key to institutional capital inflow. Schwartz also 100% agreed with the opinion that even if the bill's contents are not perfect, it would unleash enormous liquidity, similar to the past Telecom Act. Just as the past Telecom Act clarified the legal boundaries of telephone and internet to attract investment, the US cryptocurrency market structure bill is expected to clarify whether virtual assets are securities and who regulates them, thereby opening the door for large capital such as pension funds.

The driving forces behind the major uptrend were cited as the US cryptocurrency market structure bill, technological momentum, institutional capital readiness, and monetary policy support. Over the past decade, a mature virtual asset infrastructure has combined with the AI productivity revolution, creating powerful synergies. In particular, productivity improvements through AI suppress inflation, providing the Federal Reserve (Fed) with justification to implement accommodative policies such as interest rate cuts. This is similar to the historical case where former Fed Chairman Alan Greenspan maintained an accommodative stance using the PC revolution as a shield.

The current position of the virtual asset market is assessed to be similar to Nasdaq in the mid-1990s, before reaching the peak of the dot-com bubble in 2000. The total market capitalization of virtual assets, excluding Bitcoin (BTC), is approximately $1 trillion, remaining at a similar level to its 2021 peak. Considering the significant infrastructure growth over the past five years, the market value is severely undervalued. Gambardello argued that once the structural "plumbing" is complete, the value of virtual assets will explode, replicating the glory of Nasdaq.

Bitcoin is currently testing the upper trendline on the daily chart, and breaking through the 200-day moving average in the $83,000 to $84,000 range will be a key signal for an uptrend. On the downside, a strong support level is formed around $73,000 to $74,000, defending against downward pressure. Understanding the macro turning point, rather than getting caught up in short-term volatility, is crucial for maximizing profits.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*