The CEO of Crypto.com has attributed the recent surge in Bitcoin‘s value, which has risen over 150% from the previous year, to the substantial capital inflows into new spot exchange-traded funds (ETFs). During an appearance on CNBC’s Squawk Box, Kris Marzsalek compared the current market phase to the timeline of December 2020 or January 2021, suggesting that the market is experiencing a similar pattern. He also endorsed the current price correction from an all-time high of $73,000 to roughly $65,000 as a beneficial adjustment for the market.
Spotlight on ETF Influence
Marzsalek emphasized the significant role that spot Bitcoin ETFs play in driving up Bitcoin’s price. He noted the success of these ETF products, highlighting a particular instance when net inflows exceeded $1 billion in a single day. Stressing on the industry’s desire for a stable upward trajectory rather than abrupt spikes, Marzsalek suggested that this steady growth is preferable for the long-term stability of the cryptocurrency market.
Insights on Market Movements
Further discussing market dynamics, Marzsalek shared insights into the behavior of individual investors, indicating that the current cycle has not yet reached its peak. By analyzing private data, he has observed patterns that suggest individual investor activity is still building up, similar to what was seen in late 2020 and early 2021. Additionally, he pointed out that the options market primarily dictates the current price movements of Bitcoin, and overall volatility is relatively low compared to past cycles. Marzsalek concluded by expressing confidence in Bitcoin’s stable and desirable growth, reinforcing the idea of Bitcoin as a long-term investment.