Bloomberg Intelligence analyst Jamie Coutts thinks the total crypto market cap could rise 6-7x this cycle.
Coutts say certain trading strategies will explode as the total market cap of $1.483 trillion will skyrocket at the time of writing.
“As the crypto asset class heads toward $8-$10 trillion this cycle, I expect to see a proliferation of systematic and factor-based strategies. Look for funds with proven out-of-sample returns that have had two cycles to go from under $25 million to $500 million – $1 billion [assets under management].”
Cout too bludgeons down the idea that crypto’s recent bullish price action is entirely due to the hype surrounding the possible approval of a US-listed Bitcoin (BTC) exchange-traded fund (ETF).
“Those who believe the recent price action is due to the ETF news are delusional. In the first quarter, Bitcoin sent the clearest signals that the nature of asset allocation was changing. It’s just that most of them aren’t paying attention.”
Earlier this month also Coutts pointed out that the number of Bitcoin addresses still holding BTC after two purchases has reached a new all-time high (ATH).
He suggests that investors hold on for the long term as they anticipate the adoption of a spot Bitcoin ETF.
“Despite a 100% rally in 2023, they have been solid hands so far. Bitcoin addresses that bought twice and didn’t sell will reach a new ATH 844,000. This amounts to over three million BTC or 16% of the circulating supply. HODLers (wait a minute) will make ETF investors pay.”
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