by BlockTower Capital’s founder sees the mismatch as a chance to make “differentiated bets,” expecting “trending outperformance” in the next run.
The major disconnect between crypto traders’ growing short-term market uncertainty and crypto builders becoming more bullish than ever creates a prime setup for long-term investors, according to a crypto hedge fund founder.
“This is one of the starkest divergences I’ve seen in sentiment and fundamentals,” BlockTower Capital founder Ari Paul said in a March 14 X post.
Optimism grows among those beyond crypto natives
Paul said that while traders and analysts have recently turned bearish on crypto, developers — and, more broadly, those working for crypto companies less tied to market cycles — remain significantly more bullish.
“All the data points I’m hearing from basically any crypto-related project or company that doesn’t rely on “natives” near-term is positive,” Paul said.
Based on this, he’s confident that crypto is a “good buy” over the “12-month timeframe” but isn’t sure if it has reached a short-term bottom yet. Crypto analyst Matthew Hyland recently said the only way for Bitcoin to confirm that the bottom is actually in would be to close a week back above $89,000.
However, on March 14, the broader crypto market rose slightly, giving traders a bit more short-term confidence.
Bitcoin
BTC
$82,802
spiked 3.16% to $84,638 over the 24-hour period, while Ether
ETH
$1,882
rose 1.79% and XRP
XRP
$2.30
jumped 6.01%, according to CoinMarketCap.
Over the same 24 hours, the Crypto Fear & Greed Index, which measures overall crypto market sentiment, surged 19 points to 46, still in the “Fear” zone but nearing neutral territory.
“It’s very likely that we’re starting a new uptrend on the lower timeframes going into a good Q2,” he added.
Paul also said it may be the right time to explore traditional venture capital crypto investments with a longer-term outlook.
“A good time to be looking for “traditional” style VC crypto investments. By “traditional” I mean longer term, genuinely focusing on sustainable value creation, no quick monetization scheme,” Paul said.
