Cameron Winklevoss, the billionaire founder of Gemini cryptocurrency exchange, believes the upcoming run of Bitcoin (BTC) will be very different. Compared to previous bull markets, Winklevoss emphasized that there is significantly more capital, infrastructure and better projects.
The next run of Bitcoin will be dramatically different. Today there is exponentially more capital, human capital, infrastructure and high-quality projects than in 2017. Not to mention the very real inflation spectrum that all trust regimes will face in the future. Fasten your seat belts! “
Various data indicate a significant increase in capital held by investors in the cryptocurrency market. Major cryptocurrency exchanges have also been received more regulatory clarity, improvement of market infrastructure.
Capital inflow into the Bitcoin market
Two indicators mainly show that more money could flow into Bitcoin’s recent run. First, Tether’s Market Cap (USDT) It has exceeded $ 10 billion. Secondly, Grayscale Investments (AUM) ‘s assets under management You recently hit a new high.
Tether’s market cap reached $ 10 billion. Source: CoinMarketCap
Till date, Tether is the largest stable coin on the cryptocurrency market. Investors, especially in countries with regulatory uncertainties, rely on stablecoin when trading crypto assets. A rapid increase in Tether’s market capitalization could indicate that more money is waiting to be launched on crypto exchanges.
Grayscale’s crypto asset trusts are arguably the most widely used investment vehicle by institutions to engage in cryptocurrencies. During the past quarter, assets have been managed in the products offered by Grayscale They reached a record high of $ 5.1 billion.
Grayscale’s assets under management were $ 5.1 billion. Source: Grayscale
The grayscale CEO, Barry Silbert, said::
“In 2013 everyone thought we were crazy about launching a Bitcoin mutual fund. Well, look at us now … “
The confluence of Tether’s market capitalization and the expansion of assets managed by Grayscale show that capital held by institutions and retailers continues to grow significantly.
The market infrastructure for cryptocurrencies is improving
In 2020 Stock exchanges and banks in the US primarily saw regulatory clarity regarding cryptocurrencies.
The United States Currency Auditor’s Office (OCC) Banks were able to provide and operate crypto asset custody solutions. This is essentially a green light for American financial institutions to get involved in the cryptocurrency market.
It is also reported that JPMorgan has accepted Gemini and Coinbase, two of the largest spot (spot) exchanges in the United States, as customers. The fear of tense banking relationships that affect the stock exchanges and their users has decreased.
The clarity of cryptocurrencies from the leading US regulators and banks could improve the perception of this asset class by ordinary people. This means that as Bitcoin approaches a new bull market, an improvement in sentiment across the industry could benefit the acceptance and value of BTC.
Cryptocurrency startups find relevant use cases
Usually, Projects and companies in the Bitcoin and crypto markets appear to be increasing in quality. This is partial for more regulatory clarity and the fact that more conventional companies are willing to work with cryptocurrency companies.
As an an example, The Bitcoin Lightning startup Zap works with Visa and has participated in its Fast Track fintech program. This allows Zap to introduce Visa cards as part of the association.
The CEO of Zap, Jack Mallers said:
“We are contractually bound to launch one in the next 12 months and plan to launch one in the coming months.”
Better projects, increasing the amount of capital and improving the infrastructure lead to increased trust of Bitcoin investors, which increases sentiment across the industry. In the medium term, high-profile investors expect BTC to reflect these factors.
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