According to Augustine Fan, head of insights at SOFA, the recent rally in the crypto market may have been the easy part. Fan believes that the next stage will be more challenging, with increased price volatility and the potential for drawdowns.
In a Telegram message to CoinDesk, Fan expressed concern about the rising dominance of Bitcoin in the market. He compared it to the dominance of mega-cap stocks in the S&P 500, suggesting that it may not be ideal for the current stage of the crypto ecosystem.
Despite the recent gains in the market, Fan’s comments suggest that investors should be prepared for a bumpy road ahead. The future of the crypto market remains uncertain, and caution is advised as we navigate the next phase of the rally.
