https://www.youtube.com/watch?v=1VaHFw8DgxU The crypto market is witnessing a remarkable surge, with Bitcoin tripling in price over the last year and hitting new all-time highs, largely driven by speculation and the approval of spot Bitcoin ETFs.
This has sparked curiosity about how high BTC can go and whether altcoins will follow suit.
Today's discussion delves into the dynamics of the crypto market, including the different types of investors involved, such as traditional finance whales, crypto whales, and retail investors, and how their actions are shaping the market's direction.
The approval of spot Bitcoin ETFs in the US has opened the doors for traditional finance whales to invest in crypto, potentially leading to a continuous stream of capital entering Bitcoin for the foreseeable future.
This influx, combined with the passive flows from institutional allocations and the limited supply of BTC available for trading, suggests that Bitcoin's price could continue to rise indefinitely.
However, the market is also influenced by crypto whales, who have historically pumped and dumped on retail investors.
The recent memecoin rally and the lack of rotation into altcoins suggest a strategic move to attract more retail investors into the market.
Yet, the financial strain on retail investors, high inflation, and interest rates may limit their ability to participate significantly in the crypto market.
This cycle is different from previous ones due to the involvement of traditional finance whales, the changing regulations around crypto exchanges, and the macroeconomic environment.
Despite these differences, the historical 4-year cycle might still be intact, adjusted for fiat inflation, suggesting a potential BTC price of almost 200k at the cycle top.
As the market continues to evolve, it will be interesting to see how traditional finance investors react to corrections in BTC's price and how this will affect the broader market dynamics.
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