Thawing
“Thawing” – a cartoon that illustrates how hopes of the end of the crypto winter are starting to become real.
There are a lot of projects that have hibernated and investment funds that have not allocated capital over the last year, just to wait for the moment when the retail market comes roaring back.
The joy across the crypto world that arose from the SEC’s approval of 11 companies to offer Bitcoin ETFs was the hope that other non-crypto holders will now start to join the party.
A narrative is starting to build that the momentum behind Solana, the upcoming Bitcoin Halving, institutional interest in real world asset tokenization and web3 gaming resurgence are all signs that we are into the next bull market.
A counter-narrative is that this is the industry just hyping itself up in the hope that the disinterested majority will notice also has some truth, notably only 60M Americans have a 401K that could benefit from the Bitcoin ETFs.
Despite the crypto industry believing that it is an alternative to the traditional economy, it is more likely that macro events (such as lowering inflation and interest rates) that will set the starter gun for a broader revival of higher risk assets in mid/late 2024, which will include the crypto industry in its wake.
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