$BTC
Crypto is in a full bear market, tokenized bonds could be the next bullish trend - BitMEX
BitMEX CEO Stephan Lutz stated that the crypto market has entered a full bear phase, with trading volumes across digital assets and RWAs down 40-60%.Lutz added that institutional adoption of stablecoins, along with the CLARITY Act's approval, could drive the next wave of growth.He also shared that tokenized bonds are emerging as a potential next major narrative, offering investors improved access and efficiency.In a recent interview with FXStreet, BitMEX CEO Stephan Lutz stated that the crypto market has entered a full bear phase, marked by declining activity across both crypto-native and real-world asset (RWA) sectors. He added that Bitcoin's four-year cycle remains intact, pushing back against growing industry claims that the market has evolved beyond the trend.Trading volumes decline as activity slows. Lutz pointed to a sharp contraction in market participation, noting that trading volumes across crypto and tokenized assets have dropped sharply in recent months."If you look at the pure business numbers and the whole industry, trading volumes, even with traditional assets and RWAs, are basically down by —depending on how you count
- 40 to 60%," Lutz told FXStreet.He added that volatility, a key driver of crypto markets, has also declined since October, while RWA markets have seen relatively higher volatility and drawn more interest. As a result, investors have grown increasingly cautious, with many remaining on the sidelines.Despite the current downturn, Lutz expressed optimism that conditions could improve later in the year, predicting a potential recovery in the fourth quarter.On what key driver could fuel the next wave of growth, Lutz dismissed the idea of a single dominant narrative.#BitcoinTwoMonthLowStocksHitATH