Crypto Storm #105: what factors led to the new all-time high for bitcoin?

Check out this week’s edition of the Crypto Storm podcast

In this edition of the Crypto Storm podcast (also available in video ????), André Franco, Lucca Benedetti and Valter Alencar welcome Danilo Perotti, commercial director and founding partner of Mercurius Crypto, and Orlando Telles, research director of the same company.

Presenters and guests comment on some factors that led to the last fall of the crypto market, and others that were responsible for commanding the latest cycle of high currencies and historic highs of the bitcoin (BTC), which came to exceed the US$ 66,000 mark this week.

As for the last fall of the cryptocurrencies, Orlando Telles points out that, in order to understand this event, it is necessary to return to the upward cycle observed in 2020.

This cycle last year was marked by several favorable market conditions, but a few tweets from Elon Musk – CEO of Tesla were enough (TSLA; TSLA34) and as bans in china, this year, so that the largest and oldest cryptocurrency in the world had a drop of almost 50%.

However, Mercurius Crypto’s research director sees the Asian country’s bans as something positive in the medium term, due to the shift in the rate of hashes, which is already being observed, as the United States now represents 35% of the hash rate do BTC.

As factors driving the most recent rise of bitcoin and other cryptocurrencies, Orlando comments that the growing infrastructure of the crypto market and the increased participation and institutional interest in the currencies, along with the approval of the Taproot update, created a favorable scenario for the market.

However, the guest warns of the next bitcoin fix, which should not be pleasant, with chances of the cryptocurrency having a high percentage of correction.

Next, presenters comment on this week’s big event: the listing of the first exchange-traded fund (ETF) of bitcoin futures in the United States. The ETF that opened the American market is from ProShares and was listed on the New York Stock Exchange (NYSE), in last tuesday (19).

ProShares wasn’t the only company that celebrated the listing of its bitcoin ETF. Yesterday (22), Valkyrie received approval from the US Securities and Exchange Commission (SEC) and already listed your bitcoin ETF on Nasdaq.

In addition, VanEck also said that it will list its ETF based on BTC futures contracts on next week.

Danilo Perotti comments on the strengthening of bitcoin, which went from a “nerd’s currency or pyramid schemes” to a currency that attracted large investors, until it reached the current stage of cryptocurrency, which is the asset behind an ETF in a of the main stock exchanges in the world.

Then André Franco questions whether the crypto market, which currently moves in blocks, that is, alternative cryptocurrencies – or “altcoins” –, decentralized finance (DeFi) and other crypto areas can follow the movement of the main cryptos, can one day go through a differentiation of the areas that make up the industry.

This movement, according to the presenter, would make DeFi, for example, depend only on its own metrics. André also complements his question, questioning if this movement would happen naturally or if it would be necessary to have an ETF of each, so that each part of the sectors of the crypto industry could be legitimized.

To find out the comments of other presenters and guests for these and other questions, press play to listen to this issue.

???? Mining of the Week

→ Non-Instagram profile: Mercurius Crypto

→ Article: “The Crypto Price-Innovation Cycle”, from the company a16z

What are the factors that led to the latest bullish cycle and the new historical high for bitcoin? Will the complete legitimation of all sectors of the crypto market happen naturally or will an ETF be needed for each one of them? Check it out now to learn more.