Could a financial crisis end crypto’s bull run?

Would crypto’s core tenants, like decentralization, security, and transparency, ensure its survival during an economic upheaval?

These are heady times for the blockchain and crypto sector.

In the first half of 2024, spot Bitcoin ETFs debuted on Wall Street, a major U.S. presidential candidate came out in favor of cryptocurrencies, and BTC experienced its fourth quadrennial “halving” and reached new market highs.

Moreover, Ether — the world’s second-largest cryptocurrency — stands on the verge of another milestone, with an Ether ETF potentially launching in the U.S. as early as July 8.

But crypto doesn’t exist in a vacuum, and the outside world has become a less secure place, wracked by several major wars, extreme weather events and persistent monetary inflation.

Given the circumstances, a cross-border meltdown in the traditional financial system by year’s end isn’t unthinkable.

So, it bears asking: If a TradFi crisis does materialize, what becomes of the latest crypto bull run?

‘Raider’ investors are looting DAOs — Nouns and Aragon share lessons learned

Perfectly democratic DAOs are difficult to achieve, as groups of individuals have learned how to exploit token governance systems.

Governance in decentralized autonomous organizations is hard. Especially so with decentralized onchain token voting.

Ethereum creator Vitalik Buterin famously rejects it due to the difficulties of what is essentially an unbridled democracy.

Politics, money and misaligned incentives mean tokenholders are often out for their own benefit rather than the good of the DAO.

One danger of this sort of governance is that any party that amasses enough voting tokens can essentially do whatever they like — whether it’s to anoint themselves king, sell the assets or completely change the mission.

Core team members who’ve been there from the beginning see outsiders who gain control of projects as “DAO raiders” engaged in a hostile takeover to strip the DAO for parts. But the “raiders” might see themselves as hacktivist investors out to reshape the DAO’s mission.

X Hall of Flame: Bitcoin \\$500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer

Apollo co-founder Thomas Fahrer believes Bitcoin could hit \\$500,000 by the end of the four-year market cycle.

A number of factors in Bitcoin could increase its price over eight times its current value, even if most of them don’t materialize, according to the CEO of crypto-focused reviews portal Apollo, Thomas Fahrer.

“Each one of these individual things is kind of a low probability, but there’s a lot of low probability potential outcomes that can cause a really strong bull market for Bitcoin,” Fahrer tells Hall of Flame.

He predicts that, even if just a couple of these events occur, Bitcoin could reach the half-a-million-dollar mark within the next four-year cycle.

📺 Cointelegraph on Youtube

Why Did Bitcoin Collapse and What Could Happen Next?

Real Vision's Chief Crypto Analyst, Jamie Coutts, discusses the causes of the bearish trend that has engulfed the crypto markets and shares his predictions on what might come next.

He also provides insights on the latest trends in the altcoin market.

This video is made exclusively for educational purposes and does not constitute financial advice.

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