Bitcoin has been increasing in value by 28% over the past month. BTC exchange-trade funds (ETFs) are expected to be available soon. Last week, crypto investment funds received the highest amount of money in over a year. Meme coins are making a comeback. The trial of Sam Bankman-Fried is almost over, which could bring a fresh start for the crypto industry.
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As we approach winter in North America, it seems like the “crypto winter” may be coming to an end.
Crypto winter is not a technical term like a recession, but it refers to a period when crypto prices are falling, critics are attacking the industry, venture capital funding decreases, and people are searching for a new direction. Recently, a new narrative has emerged.
Wall Street is becoming heavily involved in bitcoin, promising significant investments through ETFs. The focus now is on how mainstream institutions can make digital assets safer for investors and provide regulatory clarity. After scandals like FTX, there is a push for more sustainable products such as ETFs, tokenized securities, and stablecoins, rather than meme coins and overpriced NFTs.
You may not agree with this new narrative, as it deviates from the original purpose of crypto as an alternative to mainstream finance. However, it is the reason why people are getting excited about crypto again.
Part of this excitement is driven by macro factors such as instability in the Middle East and the threat of inflation. Larry Fink, the CEO of BlackRock, believes that the recent bitcoin rally is due to investors seeking safety during uncertain times.
Fink, who used to be skeptical about crypto, now publicly supports bitcoin. In fact, crypto winter may have ended earlier this year, according to Noelle Acheson, a former head of research at CoinDesk and Genesis Trading. She points out that there has been significant regulatory progress, involvement from big banks, new funds with substantial capital, and increased participation from financial and technology giants in blockchain-related services.
Although some investors and industry participants may still be struggling, there are signs of improvement in the market. While there will be ups and downs, the overall trajectory for the crypto industry seems to be upward.