Variant Fund Partner Claims Crypto Market Bottom May Have Appeared in July

Variant Fund partner Alana Levin stated that the bottom of the crypto market likely occurred at some point in July. She had pointed out at the beginning of July that the bottom seemed close, with Bitcoin at $59,000, Ethereum at $1,600, and ZEC at $420. Levin believes the current question is whether a bull market has truly started and which projects will benefit the most in the early stages of the bull market. She noted that marginal funds may flow into value storage protocols that serve as currencies and protocols capable of generating income. Bitcoin is viewed as the dominant asset for digital value storage, and the valuations of other assets will be based on their market capitalization relative to Bitcoin's proportion and changes. For income-generating protocols, Levin expects investors to focus on sources of income, sustainability during market downturns, and profit margins. She believes that projects with potential for real-world assets and stablecoin growth are more likely to attract institutional users, and projects still led by founders after a bear market will achieve higher multiples. Additionally, Levin categorized on-chain projects that can benchmark against non-crypto businesses as a third category, believing that most belong to narrative trading rather than long-term investment, with themes including routing, reasoning, computing power, data collection, and artificial intelligence. She is skeptical about the performance of these projects, suggesting that if they significantly outperform, it would signal that we are nearing the top.

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