Arthur Cheong, a veteran investor in the crypto space, has a new perspective on the future of digital assets. The CEO of DeFiance Capital, with a following of 169,400 on X, suggests that the days of deep drawdowns and prolonged bear markets for crypto may be coming to an end. He believes that the market is going through a maturation phase, where digital assets will start to exhibit behavior similar to the stock market.

In a nuanced take, Cheong points out that the crypto market could be evolving towards a more stable and predictable pattern, akin to the growth experienced by the S&P 500 after the 2008 financial crisis. He notes that the US stock market has shown gradual growth, with returns increasingly concentrated in big cap and mega-cap stocks, while value and small caps have been left behind. If this trend continues, Cheong predicts that future bull markets in crypto will not benefit all altcoins, but only a select few, with the majority of them facing disappointing returns.

He emphasizes the need for altcoins to find their own path to success, as they may not all benefit from future market conditions. Cheong also highlights the importance of market dynamics, pointing out that mass adoption or regulatory clarity can significantly impact the value of certain digital assets.

Despite the current uncertainties, Cheong remains optimistic about the future of crypto, particularly for Bitcoin and Ethereum. He believes that both assets are undervalued, given their relatively clear regulatory status and their appeal to traditional finance demand.

Recent news from Consensys, regarding the conclusion of the SEC’s investigation into Ethereum 2.0, further supports Cheong’s positive outlook on the regulatory front for digital assets.

In summary, Cheong’s perspective offers a fresh take on the future of digital assets, suggesting a shift towards a more stable and mature market, with Bitcoin and Ethereum leading the way. As the crypto market continues to evolve, investors and market participants will need to adapt to these changing dynamics.