Opinion: Want to find the next bull market’s winners? Watch today’s outperformers

Written by Mel Gelderman

Posted on October 26th, 2023

As the token market shows signs of life on rumours of the first spot Bitcoin ETF approval, Mel Gelderman shares his thoughts on the state of play—and how to identify potential winners in the next bull cycle.

It’s been 24 months since the token market began a downward trend from its $3 trillion peak. It’s been a long slog, but some signs suggest momentum is shifting. Last week, Bitcoin price briefly spiked after CoinTelegraph posted a fake news update about a spot BTC ETF approval. BlackRock CEO Larry Fink said the short-lived rally signalled a “flight to quality” amid geopolitical uncertainty. Other tokens are rising too.

BlackRock CEO Larry Fink described the recent crypto token rally as a “flight to quality” as his firm awaits a decision on its spot BTC ETF application (Photo: Hollie Adams/Bloomberg)

Institutional demand 👀

Bitcoin has rallied this week too, but I think we’re still some way off from a full market surge. But when it comes, BTC price is likely to lead first; recent activity points to this, and it usually does. Bitcoin is the biggest and best-known brand in the token universe. If BlackRock’s ETF gets approved, it could see huge demand—it’s worth remembering that institutions have little interest in tokens today beyond BTC and ETH.

The introduction of a BlackRock ETF could have a significant impact on the Bitcoin price in USD. BlackRock, being one of the world's largest asset management firms, commands considerable influence in the financial markets. The approval and launch of a Bitcoin ETF by BlackRock would likely attract a substantial influx of institutional investors who have been waiting on the sidelines due to regulatory uncertainties. This increased institutional participation could lead to heightened demand for Bitcoin, potentially driving up its price.

“I always like to follow bear market builders.”

But as recent activity has shown, it takes less for smaller tokens to rally hard. Certain projects have outperformed as the market has bounced, hinting that they could be worth watching as sentiment improves. Solana and Chainlink are good examples, as both have soared after months of gruelling price action. Both projects have been building (Solana’s Shopify and Visa partnerships, Chainlink’s CCIP plans) and have loyal communities. While it’s too early to call the next 100x project, I always like to follow these bear market builders.

Solana’s SOL token has risen in 2023 after suffering from a steep correction during FTX’s collapse last year (Source: CoinGecko)

Focusing on education and technology

I should also note that markets are irrational. Tokens are in their infancy and the market is speculative; we don’t know what will win on tech. The macro outlook is also precarious with soaring interest rates and wars ongoing in the background.

“Tokens are here to stay and millions of people will use them in the future.”

But we do know that tokens are here to stay and millions of people will use them in the future. If you want to be part of this movement today, I think your best option is to stick around, learn about the tech, and find the projects that you love. Tools like token.com can help. Now let’s see what happens as we enter year three since the market top.

If you want to learn more about how to invest in Bitcoin you can access here token.com

Please note: Investing in crypto assets is risky. Due to the volatile nature of the cryptocurrency market, investors run the risk of losing their funds when they make an investment. Returns from crypto asset investing are not guaranteed, therefore users should always be aware of the risks.