{"id":306526,"date":"2021-07-23T16:03:17","date_gmt":"2021-07-23T13:03:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/illusion-or-reality-crypto-demand-either-faltering-or-poised-to-charge\/"},"modified":"2021-07-23T16:03:17","modified_gmt":"2021-07-23T13:03:17","slug":"illusion-or-reality-crypto-demand-either-faltering-or-poised-to-charge","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/illusion-or-reality-crypto-demand-either-faltering-or-poised-to-charge\/","title":{"rendered":"# Illusion or reality? Crypto demand either faltering or poised to charge"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a288e2cce017\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a288e2cce017\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/illusion-or-reality-crypto-demand-either-faltering-or-poised-to-charge\/#Moving_beyond_market_cycles\" >Moving beyond market cycles<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/illusion-or-reality-crypto-demand-either-faltering-or-poised-to-charge\/#A_boom-and-bust_dynamic\" >A boom-and-bust dynamic?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/illusion-or-reality-crypto-demand-either-faltering-or-poised-to-charge\/#Playing_the_%E2%80%9Clong_game%E2%80%9D\" >Playing the \u201clong game\u201d<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Illusion or reality? Crypto demand either faltering or poised to charge <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvMGMzMmRlMGMtYmU1Ni00YTkwLTlhMmItMWIzMzNkZjNjYzE5LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>BlackRock is the world\u2019s largest asset manager, so when its CEO, Larry Fink, remarked recently that he was seeing \u201cvery little in terms of investor demand\u201d with regard to crypto and Bitcoin (BTC) based on \u201cmy last two weeks of business <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a>,\u201d it set off some alarm bells.<\/p>\n<p>A lively <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> discussion followed one commentator\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/DTAPCAP\/status\/1415503957380714500\">remarks<\/a> of how BlackRock was simply protecting its legacy bond business, given that \u201cGoldman Sachs, BNY Mellon, State Street, Morgan Stanley, all entered the space in response to demand.\u201d Furthermore, BlackRock is the second-largest owner of MicroStrategy (MSTR) stock, regarded by many as a pure Bitcoin play.<\/p>\n<p>As has been recounted, Bitcoin reached its all-time high of $64,000 on April 14 but soon thereafter plunged, and it has now been trading at roughly half its April high for weeks, as have many other cryptocurrencies. Some users are understandably nervous.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Moving_beyond_market_cycles\"><\/span>Moving beyond market cycles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Perhaps it is better to adopt a longer-term view regarding recent events. \u201cTwo months is a very short time period in crypto,\u201d Bitwise chief investment officer Matt Hougan explained to Cointelegraph, adding, \u201cI\u2019m not sure what to make of Fink\u2019s comments, except that they don\u2019t align with our day-to-day experience.\u201d <\/p>\n<p>\u201cInstitutional investors take 12\u201336 months to do due diligence,\u201d Jeff Dorman, chief investment officer of digital asset management firm Arca, told Cointelegraph, adding further, \u201cThey aren\u2019t timing market cycles. They are trying to get comfortable with the asset class to make a 10-year-plus commitment.\u201d<\/p>\n<p>\u201cIt\u2019s important to remember that the market is up more than 200% in the past 12 months, making it the best-performing asset class in the world over the last year,\u201d added Hougan, who claims to see continuous inflows into Bitwise. <\/p>\n<p>Moreover, crypto and blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> is a global phenomenon, and one has to be careful about drawing worldwide conclusions from American or European events. BlackRock, for the record, is based in New York City. \u201cIt doesn\u2019t feel like a crypto winter here in Asia,\u201d Justin d\u2019Anethan, head of exchange sales at Singapore-based EQONEX, told Cointelegraph, adding: <\/p>\n<blockquote><p>\u201cWhile prices falling have definitely dampened some of the enthusiasm, we\u2019re still seeing a clear interest for crypto and crypto- and blockchain-based ventures. If anything, the stagnation in the lower 30,000\u2019s was\/is seen by many as an opportunity to get in.\u201d<\/p><\/blockquote>\n<p>Elsewhere, Emin G\u00fcn Sirer, Cornell University professor and creator of the Avalanche blockchain protocol, told<em> Cointelegraph China<\/em> recently that hedge funds aren\u2019t the only institutional players probing the crypto waters these days: \u201cI have been getting contacts from retirement funds, [&#8230;] far more slower-moving but with maybe 10 times more dollars under their control, and they are slowly coming into crypto.\u201d<\/p>\n<p>Also, Fidelity Digital, an institutional pioneer in the crypto space, has been aggressively expanding<em> <\/em>lately \u2014 boosting staff by 70% due to \u201cstrong crypto demand,\u201d including 100 new workers in Dublin, Boston and Utah, as Fidelity Digital president Tom Jessop <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-07-12\/fidelity-digital-to-expand-staff-by-70-on-strong-crypto-demand\">told<\/a> Bloomberg. The firm sees more demand from retirement advisors as well as companies, and it is broadening its product offerings accordingly. \u201cWe\u2019ve seen more interest in Ether, so we want to be ahead of that demand,\u201d said Jessop. Megan Griffin, a Fidelity Digital spokesperson, told Cointelegraph: <\/p>\n<blockquote><p>\u201cWe haven\u2019t seen a material change in [crypto] demand during the [post-April 14] drawdown, given institutions tend to hold a long-term view and are experienced in managing through cycles.\u201d <\/p><\/blockquote>\n<p>Dorman was even more emphatic. \u201cThe interest in digital assets from new investors has accelerated \u2014 not slowed down,\u201d he said. \u201cAny slow down with allocations is more a function of summer than it is price.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_boom-and-bust_dynamic\"><\/span>A boom-and-bust dynamic?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Still, there are valid reasons why the demand for crypto could be seen as faltering. \u201cThere is little doubt that the boom and bust dynamics of the past weeks represent a setback to the institutional adoption of crypto markets and in particular of Bitcoin and Ethereum,\u201d a JPMorgan strategist <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.usatoday.com\/story\/money\/markets\/2021\/06\/22\/bitcoin-price-update-ethereum-dogecoin-crashing-heres-why\/5304172001\">said<\/a> in a report in June. <\/p>\n<p>\u201cOf course, the crypto markets have indeed been going sideways,\u201d Lex Sokolin, head economist at ConsenSys, told Cointelegraph, adding, \u201cThe drivers are some combination of pushback to mining, global macro risk-off trends and momentum slowing on sentiment\/meme trading.\u201d But the underlying fundamentals are solid, Sokolin continued:<\/p>\n<blockquote><p>\u201cWe see immense demand from institutional investors for both crypto assets, as well as the equity of crypto companies. We can point to the $18-billion valuation of FTX and $9-billion valuation of Bullish as recent evidence, both funded by some of the world\u2019s largest hedge funds.\u201d<\/p><\/blockquote>\n<p>The events that have unfolded since the start of the summer have<em> <\/em>caused some investors to slow down and conduct a bit more research, acknowledged Hougan. China\u2019s banning Bitcoin mining at around the same time that United States authorities seemed to be ramping up efforts to regulate crypto forced investors \u201cto pause and reflect. The good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> is that both of these developments are long-term positives for the market even if they introduce short-term volatility.\u201d<\/p>\n<p>Still, the roller coaster ride of recent months is a reminder that BTC and crypto, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly, have still not solved their volatility problem. \u201cVolatility scares everyone,\u201d observed Dorman, adding, \u201cVolatility is more accepted when you trust the value of the underlying asset \u2014 that\u2019s the biggest hurdle with institutional investors in terms of their education.\u201d <\/p>\n<p><strong><em>Related:\u00a0On the fence: If this is a crypto bear market, how long can it last?<\/em><\/strong><\/p>\n<p>The only notable shift Dorman has seen in recent months \u201cis that new investors are way more interested in DeFi, gaming and other cash-flow producing assets than they are in Bitcoin or Ethereum \u2014 or ETH competitors.\u201d<\/p>\n<p>\u201cDecentralized finance continues to mature and process transactions and loans,\u201d said Sokolin, adding: \u201cNFT-based platforms are seeing major studios and creators shift to new tokenized business models. Computational chains like Ethereum are clearly having a moment. It is also possible that we will see more DeFi-type activity anchored to Bitcoin, Solana or other chains, and that will grow the entire pie.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Playing_the_%E2%80%9Clong_game%E2%80%9D\"><\/span>Playing the \u201clong game\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Crypto continues to face challenges, though. \u201cWe expect to see significant new activity on the U.S. regulatory front, for instance, and if regulators over-reach, that could have a material negative impact on crypto,\u201d Hougan explained, while going on to add, \u201cOf course, the flip side is true, too: If regulators put forth balanced regulation, that would lay the groundwork for the next great crypto bull market.\u201d<\/p>\n<p>D\u2019Anethan believes that many of crypto\u2019s technological challenges, such as scalability and transaction speed, have \u201calready been looked at and somewhat resolved,\u201d but there is still a need to find the right balance between \u201cnetwork effect\u201d and efficiency, noting:<\/p>\n<blockquote><p>\u201cBTC is a well-accepted crypto but, technologically speaking, is not the best user experience. A new cryptocurrency might be great, but if nobody uses it, it doesn\u2019t do much good. This is a self-balancing act that still needs to play out.\u201d<\/p><\/blockquote>\n<p>Overall, long-term trends remain positive, suggested Dorman, \u201cWe are in a multi-decade secular uptrend. [&#8230;] Every single near-term challenge is a long-term positive \u2014 regulation, China dispersion, etc.,\u201d while Sokolin, for his part, called attention to a \u201cdeep investment in the digital asset long <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> by sophisticated participants that is h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ening now.\u201d <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/illusion-or-reality-crypto-demand-either-faltering-or-poised-to-charge\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Illusion or reality? Crypto demand either faltering or poised to charge &#8221; BlackRock is the world\u2019s largest asset manager, so when its CEO, Larry Fink, remarked recently that he was seeing \u201cvery little in terms of investor demand\u201d with regard to crypto and Bitcoin (BTC) based on \u201cmy last two weeks of business travel,\u201d&#8230;<\/p>\n","protected":false},"author":1,"featured_media":306527,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvMGMzMmRlMGMtYmU1Ni00YTkwLTlhMmItMWIzMzNkZjNjYzE5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74355,117,73711],"class_list":["post-306526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-adoption","tag-business","tag-investments"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/306526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=306526"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/306526\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/306527"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=306526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=306526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=306526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}