Breaking out of its summer's doldrums yesterday with the industry hoping the bear market bottom could be in Bitcoin seeing its strongest one day rally since March with it as well as a lot of soaring as well and in New York morning trade Bitcoin back above the $70,000 level for the first time since June.
We are looking at the crypto major rallying over 3% and edging closer to $72,000 but options trading for.
Hyperliquid also exploiting earlier yesterday and the president of the US revealing efforts to bring hyper liquid into the US market in a fully legal as well as compliant way.
We also saw a crypto equity surge BlackRock spot Bcoin ETF jumping 6% while Treasury as such as a strategy and Bin immersion technologies saw a double digit advance.
But while traders fixate on the short term price action institution.
Strategists are looking at the underlying fundamentals and joining us this morning to weigh in is Martin line who is the head of digital asset research and strategy and market factor indexes.
Martin, great to have you here.
Thank you so much for joining us while we are looking at the crypto market higher.
Bitcoin just broke out triggering over a billion dollars in short liquidations in just 24 hours.
But what do you make of this breakout right now?
Well, uh, it's the strongest technical signal we've had this cycle.
Yeah, Bitcoin closed at, uh, over 690 yesterday, and, and you named it, uh, now we are above the 200 day moving average and already almost close to 720.
So it held the level, rather than just touching it and fading.
Um, but I stopped short of calling it confirmed.
Yeah, so Bitcoin has faked out at this exact line before in 2014 and briefly in 2018.
Where it closed above the average for a day or two and dragged everyone in who thought they'd missed the bottom, and then rolled over and broke down again a few weeks later, but, uh, given what happened yesterday and the strong volume, it's a super encouraging signal since, yeah, since a very long time, so I like the setup.
Yes, and when you zoom out and look at the historical charts, Bitcoin as well as Altcoins are actually holding up and behaving better in this cycle than other cycles, especially in bear markets.
But I understand that you've noted there is apathy among traders, and what would you say is causing this disconnect when we're looking at the structural price resilience versus overall market sentiment?
Yeah, I mean, I have to mention that there was apathy until yesterday.
So, um, this, this changed completely, but, um, this bear market, although it was a better bear market than the, the other ones before, uh, everybody was completely, uh, not interested in crypto, retail was not in, and, um, despite the great headlines about stablecoins, about tokenization, about the institutions coming, And you saw that also in the chart with this low volatility, but I think today with the actions from the Treasury, uh, that changed completely, and it seems that Bitcoin, uh, with this very strong performance is now together with gold, seen as a debasement hedge, as a store of value again.
And finally, Martin, before I let you go, you've highlighted that the next major cycle will look very different, led by protocols that actually generate revenue and also have active users.
But with some of these revenue producing protocols already outperforming year to date, why do you think the next bull run will be all coin driven rather than led purely by Bitcoin?
Um, because the last cycle was purely Bitcoin driven and the, all the consensus is expecting the same thing again, but, uh, if you look at the hyperliquid news yesterday, and that's one of, uh, a very high revenue producing protocol.
You see that especially institutional investors who are coming from the equity side and look at fundamentals, they will look at those protocols who have economic traction, users producing fees, and you already see that this year that these protocols are even outperforming Bitcoin, I don't speak about the move yesterday, but year to date.
And I think it absolutely makes sense if more institutions come in that they look at fundamentals.
And less than 60 seconds here, but what are your expectations when it comes to the regulatory landscape here in the US?
Uh, I think I'm, I'm less focused on the regulatory landscape.
We, I'm, I'm sitting in Europe and we have MICA here for several years, uh, and that wasn't the big catalyst, yeah.
If you think of it, if institutions enter and they can finally enter, I think you get the clarity Act done.
It's a long-term decades, multi-decade process.
Yeah, it's not that you snip with your finger and, and everything is done.
So I'm less worried about that.
I'm, I'm more worried about the big picture, uh, and so you see the institutions coming in, uh, you have Bitcoin finally back as a store of value.
You have hyperliquids, uh, discussed with the president, so that's all very, very bullish in the midterm.
Well, Martin, I appreciate your time.
Thank you so much for joining us today and thank you so much for weighing in on what we're seeing across the crypto markets this morning.
Thank you very much, Ray.
