Bloomberg Analyst Predicts a Massive Crypto Market Cap Jump
Bloomberg Intelligence analyst Jamie Coutts predicts that the overall crypto market cap could surge by 6-7x this cycle. According to Coutts, specific trading strategies will boom as the total market cap of $1.483 trillion at the time of writing balloons.
As the crypto asset class moves towards $8-$10 trillion this cycle, Coutts expects to see the proliferation of systematic and factor-based strategies. He anticipates that funds with proven out-of-sample returns and two cycles under their belt will grow from sub-$25 million to $500 million -$1 billion in assets under management.
Coutts also dismisses the notion that crypto’s recent bullish price action is solely due to the excitement surrounding the potential approval of a US spot Bitcoin (BTC) exchange-traded fund (ETF). He believes that Bitcoin was sending clear signals about the changing nature of asset allocation as early as Q1, and most people were not paying attention.
Furthermore, Coutts highlights that the number of Bitcoin addresses still holding BTC after making two purchases has reached a new all-time high (ATH). This suggests that investors are holding for the long term as they anticipate approval of a spot Bitcoin ETF.
Hot Take: The Future Valuation of the Crypto Space
Bloomberg analyst Jamie Coutts predicts a significant increase in the overall crypto market cap, indicating a growing trend in trading strategies and a shift in asset allocation patterns. As Bitcoin continues to send strong signals about changes in asset allocation, it’s clear that the financial landscape is evolving rapidly. The surge in Bitcoin addresses holding BTC after two purchases also indicates a long-term investment outlook and potential future growth spurred by anticipation of a spot Bitcoin ETF approval.
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