The cryptocurrency market may not be out of the woods yet, but Funstrat’s head of digital asset strategy, Sean Farrell, believes the odds are slowly starting to favor digital assets over traditional markets. Recently PodcastFarrell said macro conditions continue to keep Bitcoin and altcoins under pressure. However, he believes that any sharp correction from here could become one of the best buying opportunities of the session.
Strategy is no longer the biggest concern
Farrell said surrounding concerns Michael SaylorThe company’s strategy has declined significantly after the company raised more money and reduced the immediate risk of a liquidity crunch.
This does not mean that the story is over. The strategy still carries about $2 billion in preferred annual dividend obligations, along with roughly $5 billion in bonds that could be returned to the company between 2027 and early 2028.
If Bitcoin remains stuck at current levels for years, these liabilities could become an issue. But for now, Farrell believes the worst-case scenario has been largely avoided.
Why was Bitcoin delayed?
Many investors are frustrated that Bitcoin has not kept pace with the rise in US stocks. Farrell says this is actually normal.
Over the past year, corporate profits have grown faster than global liquidity, making stocks the investment of choice. In that environment, investors naturally chase productive assets rather than monetary assets like Bitcoin.
This trend is expected to change over the next three to six months as liquidity conditions improve. When this happens, cryptocurrencies can attract new capital again.
Ethereum could have the advantage
While Farrell remains bullish on Bitcoin, he argues that Ethereum may offer a better upside over the next 12 to 18 months.
The launch of Robinhood’s Ethereum Layer-2 blockchain adds another long-term use case for the network. The platform hasn’t generated meaningful revenue yet, but Farrell says the bigger story is the growing adoption of token assets and corporate blockchains built on Ethereum.
He also said that Ethereum currently looks like a “cleaner trade” because it does not face the same potential selling burden associated with Strategy’s Bitcoin holdings. Moreover, Ethereum developers are making faster progress in preparing the network for future quantum computing risks.
How low can BTC go?
Despite the short-term uncertainty, Farrell says the risk reward in cryptocurrencies now looks more attractive than in stocks.
It remains cautious due to lack of liquidity, high real yields and uncertainty about Federal Reserve policy. However, if Bitcoin drops to the low $50,000 range, or even around $48,000, he sees it as a rare opportunity rather than a reason to panic.
“If we get there, I’ll back the truck up,” Farrell said.
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