Have the “sluice gates” opened? – ‘Excitement’ Building as $10 Trillion Crypto Price Earthquake Threatens Bitcoin, Ethereum
BitcoinBTC, ethereum and cryptocurrencies have seen phenomenal price appreciation this year, climbing as Treasury Secretary Janet Yellen warns of looming “economic and financial disaster.”
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The bitcoin price topped $30,000 per bitcoin last month, double its November low, while the ethereum price has seen a similar 2023 rally that led founder Vitalik Buterin to issue a surprise bullrun warning.
Now, as the US grapples with a banking crisis that JPMorgan analysts believe could turn into a “catastrophic” scenario, “excitement” is building in the bitcoin, ethereum and crypto markets, with one investment banker asking: “Have the floodgates opened?”
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“We’re seeing a lot more maturity,” Cantor Fitzgerald’s head of crypto, blockchain and digital asset investment banking told Elliot Han CNBCadding that there is currently “a lot of excitement” in the bitcoin, ethereum and crypto space as “more institutional players” enter the space.
“Now, are the floodgates open? No, I don’t think so. But I think you’re seeing a lot more coming into the space. You’re definitely seeing a lot more experimentation,” Han said, pointing to regulation “slowly coming into place.”
US regulators and lawmakers have zeroed in on bitcoin, ethereum and crypto this year after last year’s selloff and the high-profile implosion of major crypto exchange FTX.
“While a well-thought-out regulatory framework for crypto will improve investor confidence and encourage business and job creation, the opposite – a lack of a framework for crypto – is creating uncertainty and the withdrawal of the sector as we see in the US today.” Bradley Duke, co-chief executive at ETCETC Group, said in emailed comments.
The US Securities and Exchange Commission (SEC) has been criticized for its “regulation by enforcement” approach to cryptocurrencies this year as policymakers debate whether to adopt a cryptoregulatory framework that could lend legitimacy to a technology that some see as inherently fraudulent.
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The 2022 crypto price crash that wiped out about $2 trillion from the combined bitcoin, ethereum and crypto market sapped the energy of the crypto industry, but this year’s bitcoin price rally has reinvigorated traders, investors and companies.
Earlier this year, two of the world’s largest financial institutions with a combined $14 trillion in assets under management – Fidelity and BlackRock – continued to quietly expand into the crypto world.
Last year, BlackRock, the world’s largest asset manager with $10 trillion in assets under management, announced a partnership with major crypto exchange Coinbase to give its institutional clients access to bitcoin.
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