Crypto’s Next Bull Market Could Be Led by Wall Street, Not Retail
Crypto’s Next Bull Market Could Be Led by Wall Street, Not Retail
"They've grown a lot, but they're extremely, extremely small," Valente said. "The opportunity here to take more market share from TradFi and to tokenize these assets is still enormous."
Add clearer regulation and a little more appetite for risk, he argues, and those markets could surprise investors with how quickly they expand. But that still leaves the need to get the CLARITY Act passed — which remains the opposite of a foregone conclusion.
On Monday, odds of the bill passing dipped to new lows on Polymarket at just 11%.
With that Senate vote approaching a potential defeat, that doesn't mean crypto can't fall again. But most people are in the same camp Valente is in — that all of this bad news is priced in already.
Instead, Valente thinks macro remains firmly in control of Bitcoin in the short term. After Fed Chair Kevin Warsh reiterated his focus on inflation at Jackson Hole, rate-hike expectations have risen again. Renewed fighting between the U.S. and Iran pushed oil and Treasury yields higher Monday, adding another complication for risk assets.
Valente pointed out that prediction markets recently gave Bitcoin roughly similar odds of finishing the year near $95,000 as falling back toward $60,000-$65,000.
"The market doesn't think that we're going to stay here," he said.
But that is precisely what makes the institutional activity beneath the surface so interesting.
In every prior cycle, rising prices brought institutions to crypto. This time, the institutions may be arriving before any material swing in price.
This article has been published in Coinage via Yahoo News.
Crypto’s Next Bull Market Could Be Led by Wall Street, Not Retail
Since the dawn of Bitcoin, retail has led every cycle. But that may no longer be the case
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