The crypto market will enter a super cycle as new money is being poured in through stablecoins.

According to Bloomberg, Mr. Harry Yeh commented that although it is currently a difficult period when the entire market corrects sharply, stablecoins are bringing a lot of positive news. The opportunity for a crypto supercycle is now

According to Bloomberg, Mr. Harry Yeh commented that although it is currently a difficult period when the entire market corrects sharply, stablecoins are bringing a lot of positive news. The opportunity for a crypto supercycle exists. A scenario where Bitcoin hits the $400,000 mark will appear.

Although there is no formal definition, a supercycle is a period in which the price of an item increases continuously over an extended period of time, often up to 10 years or more.

Stablecoins are cryptocurrencies created to minimize the impact of price fluctuations in the cryptocurrency market by pegging them to USD. Some prominent stablecoins that are widely used by many people can be mentioned as USDT issued by Tether company, TerraUSD (UST) of Terra ecosystem or BUSD of Binance.

Mr. Yeh believes that as stablecoins gain popularity and support, the crypto market will also be affected. The next phase of growth will be stronger than other cycles in the past.

The fund manager Quantum believes that stablecoins have solved the liquidity problems and low transaction costs of Bitcoin or Ethereum. Stable money gradually comes to life, becoming a payment method in daily transactions.

“Cryptocurrency is still wild. I think we are only halfway through the current bull cycle. In 2017, there weren't any stablecoin projects. We have a lot now. This is a sign that cryptocurrencies are being widely adopted by society. The signal for a super cycle is about to happen”, shared Harry Yeh.

Bitcoin started 2022 with a long slide towards the $40,000 mark on January 9, Harry thinks the market will stabilize and rally again. The founder of the Quantum fund made a prediction of $400,000 for Bitcoin, based on the macroeconomic situation such as the action of the US Federal Reserve (FED) deciding to raise interest rates.

Despite raising interest rates, the Fed continued to regularly pump money into the market. According to Mr. Harry, Bitcoin is still the choice of many investors to avoid inflation. Bitcoin is currently trading around $42,000, down nearly 40% from its peak of $68,000 in early November 2021.
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