The CEO of Crypto.com Believes Bitcoin’s Bullish Run is Driven by Inflows from Spot ETFs
The price of bitcoin has increased over 150% in the past year, and according to Kris Marzsalek, the CEO of Crypto.com, this surge has been primarily driven by inflows into spot exchange-traded funds (ETFs). Marzsalek believes that the success of these new ETF products has led to a supply problem, resulting in an increase in the price of bitcoin.
In March alone, net spot bitcoin ETF inflows surpassed $1 billion, highlighting the popularity and success of these investment vehicles. Marzsalek described them as a “very successful product” that is contributing to the rise in bitcoin’s price.
Bitcoin’s Current Price Correction is Seen as “Healthy”
Bitcoin recently experienced a correction, with its price dropping from all-time highs above $73,000 to around $65,000. However, Marzsalek views this correction as a positive development that removes some of the leverage built up in the system. He believes that avoiding sudden aggressive spikes in price is beneficial for the industry and prefers to see steady inflows into bitcoin and other cryptocurrencies.
According to The Block’s price data, bitcoin is currently valued at just above $66,000.
We Are Still Early in the Current Market Cycle
Marzsalek suggests that retail participants still have significant potential for growth in this market cycle. Drawing on proprietary data and comparing it to previous cycles, he estimates that the current state of the market is similar to December 2020 or January 2021. He notes that retail investors play a crucial role in driving market dynamics.
Furthermore, Marzsalek points out that the current volatility in bitcoin’s price is relatively low compared to previous cycles. He believes that a steady ramp-up in price would be ideal for long-term holders, emphasizing that bitcoin is an asset that should be held for decades.
Hot Take: Bitcoin’s Rise Driven by Inflows from Spot ETFs, Price Correction Seen as Healthy
The CEO of Crypto.com, Kris Marzsalek, attributes the surge in bitcoin’s price to inflows from spot exchange-traded funds (ETFs). He views this as a supply problem resulting in an increase in price. Despite a recent correction, Marzsalek considers it a healthy move that removes leverage from the system.
Marzsalek believes that retail participants still have room to participate in the current market cycle and compares the current state to December 2020 or January 2021. He notes that the current volatility is relatively low compared to previous cycles and emphasizes the importance of steady growth for long-term holders.
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