Cryptocurrency Market Dynamics
Will the market surge due to the U.S. interest rate cuts? Actually, since the ETF approval at the beginning of the year led to a surge, BTC has been hovering around 60,000, and recently has pulled back due to the uncertainty of the elections. The mainstream 'VC coins' have suffered even more.
Who is buying ETFs?
Many sovereign funds, public funds, and family trusts are allocating part of their assets to BTC. On one hand, the expectation of interest rate cuts by the Federal Reserve has led to a devaluation of the dollar, making Bitcoin's 'digital gold' attribute more prominent, beating inflation; on the other hand, support from leading institutions like BlackRock and Vanguard has also made BTC more secure and reliable, reducing the risk of liquidation.
So far this year, most altcoins have not performed as well as BTC, with its market cap share approaching 60%. Large funds basically only trust BTC, and top institutions have unlimited buying capacity.
Super Large Institutions in Cryptocurrency
Undoubtedly, Binance is currently the number one player. Even though CZ was fined over 4 billion USD by the U.S., it hasn't harmed Binance. It’s worth noting that 4 billion exceeds the market value of many projects. Moreover, whenever Binance announces the listing of a coin, that coin almost always experiences a significant surge. The previous NERIO is an example, but its popularity has gradually decreased. After all, only projects that continuously deliver can stabilize coin prices, but there are no solutions during bad market conditions.
It is worth noting that Binance has accepted U.S. regulatory scrutiny, and CZ confirmed that user funds were not misappropriated, which also means that Binance is about to enter a new starting point.
Now is a good time to position oneself; those interested can follow along.