Table of Contents
Toggle
Does Strategy Influence Bitcoin Price?
Variables of Regulatory Environment
Future Market Trends Still Await Observation
Yanowitz pointed out that Strategy has been heavily purchasing Bitcoin in recent months, with a total investment of over $20 billion. He believes that without this support, the price of Bitcoin may experience a significant drop. This suggests that Strategy’s buying behavior has made the market cycle of Bitcoin different from the past, and the market may still be in the early stage of a bull market, rather than approaching its peak.
His viewpoint is also supported by Dan Matuszewski, Co-founder of CMS Holdings. Matuszewski believes that the current market still lacks sufficient inflow of venture capital, and the overall environment is still in a “Player versus Player” game mode, which is different from previous bull market cycles. He analyzed, “The impact of the market in 2021 has not completely dissipated, and liquidity is limited, making it difficult to drive large-scale capital inflows. Venture capital remains a key indicator for evaluating the altcoin market.”
Cryptocurrency investor Santiago Santos also expressed a similar view, believing that the market still needs to see more capital inflows. Currently, the funds are mainly concentrated in a few popular assets, and a comprehensive bull market trend has not yet formed.
In addition to discussing whether the bull market has reached its peak, the regulatory environment in the United States is also an important factor influencing market development. Recently, the U.S. Congress held a hearing on “Operation Chokepoint 2.0” to discuss whether regulatory agencies intentionally suppress the access of cryptocurrency companies to banking services.
Operation Chokepoint 2.0 refers to the practice of the Federal Deposit Insurance Corporation (FDIC) and other regulatory agencies pressuring banks to prevent them from providing financial services to cryptocurrency companies, making it difficult for many cryptocurrency enterprises to obtain bank accounts.
According to the testimony of Paul Grewal, General Counsel of Coinbase, at the hearing, the actions of regulatory agencies have caused banks to hesitate in serving cryptocurrency companies, resulting in many enterprises being unable to obtain basic financial services. He stated, “When banks actively seek permission to provide these services, they are either ignored or required to undergo cumbersome reviews until they eventually give up.”
Furthermore, Austin Campbell, CEO of WSPN USA, also pointed out at the hearing that regulatory agencies choose to suppress the entire industry due to the improper behavior of a few cryptocurrency companies (such as the FTX scandal), which is extremely detrimental to market development.
Although there have been some signs of improvement in the U.S. regulatory environment recently, Yanowitz believes that simply changing the management of the FDIC is not enough to completely change the current situation. The market still needs a clearer and fairer regulatory framework to ensure the continuous development of the cryptocurrency industry in a legal and compliant environment.
Currently, there is still a divergence of opinions in the market regarding whether Bitcoin has reached its peak. On one hand, the large-scale buying activity of Strategy may support the price, keeping the market from truly entering the later stage of a bull market. On the other hand, the uncertainty of the regulatory environment may still affect investor confidence.
Regardless of the stage the market is in, Yanowitz emphasizes that changes in regulatory policies and the dynamics of capital inflows will still be the key factors influencing the cryptocurrency market in the future. Investors should closely monitor market dynamics to respond to potential risks and opportunities.
