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Author: Anthony Pompliano, compiled by: Shaw bitchain vision
To investors.
In the financial market, it is important to avoid being careless.I think Bitcoin is a good example right now.The digital asset has fallen 3% in the past month and has only risen 20% since the beginning of the year.This is far from that jaw-dropping rate of return that cannot inspire an entire generation of pursuit of asymmetric returns as it did in the past.
But the failure to rise sharply in the past eight months does not mean that this will continue to be the case for the rest of the year.Fundstrat’s Tom Lee says on CNBC show he thinks the price of Bitcoin may double by Christmas.
Do I think Bitcoin will double by the end of the year?have no idea.Bitcoin has also experienced significant fluctuations in the past, so this is not impossible, but it is really breathtaking to see Bitcoin’s total market capitalization increase by about $2 trillion in about 100 days.
Regardless of the price trend, Tom Lee’s analysis of why Bitcoin is expected to rise is all the way to the point.Bitcoin remains the most sensitive macro asset to global liquidity conditions.If the Fed cuts interest rates in September, we expect Bitcoin prices to rise with it..
butBitcoin is not the only asset that Wall Street is concerned about.This may not be something Bitcoin enthusiasts are happy to hear, but we must recognize the current market situation.In the past month, despite Bitcoin’s slight decline, Ethereum has risen nearly 10%, while Solana has risen more than 20%.
This is a direct result of Wall Street expanding its interest to more crypto assets.We have seen the launch of Ethereum ETFs, as well as the establishment of many altcoin digital asset reserve companies.
Tom Lee announced the establishment of Bitmine, a treasury reserve company focused on Ethereum.Not only did he buy and pledge Ethereum assets, he also invested in a company called Eightco Holdings ($OCTO).Why do they do this?Because Eightco Holdings is becoming a treasury reserve company for Worldcoin, which is built on Ethereum.
soNow there are companies that are investing in the ecosystem of these altcoins.Before you argue how stupid this strategy is, you should know that Eightco Holdings’ stock price has risen about 30 times within one day of the announcement.I don’t know if there was a company in Nasdaq that rose from $1.72 per share to more than $72 in one trading day, but that happened yesterday.
It’s simply crazy.
This happens not only in the Ethereum ecosystem.We see Sol Strategies, a Canadian publicly traded company dedicated to building Solana infrastructure, cross-listed and started trading on the Nasdaq.The company’s stock code is $STKE, which represents “interest”.
I’ve been a consultant to the company and CEO Leah Wald for a while, so I’ve seen firsthand how the company has grown.They hold a large number of SOLs on their balance sheets, they pledge these assets, and in addition, they have multiple verification nodes, which enables profit-making cash on SOLs pledged by others.
Similarly, we see Forward Industries Inc. announces the launch of a new treasury reserve company focused on Solana.The company is invested by Galaxy Digital, Jump Crypto and Multicoin.Kyle Samani will join and serve as chairman of the board.To implement the strategy, the company has raised more than $1.6 billion in cash and stablecoins.
This won’t happen unless the market opportunity is obvious.
If you think Wall Street likes companies that hold altcoins, then look at it when they realize that these companies can also provide cash flow and earnings.Say it again,It doesn’t matter what individual investors think, you must understand what the entire financial market is extremely eager for – profits.
We also see asset management companies like Coinshares announce listing through special purpose acquisition companies (SPACs).Their valuation is also over $1 billion.Currently, the cash flow of cryptocurrency-related companies is highly sought after.
So that brings me back to a broader topic.Cryptocurrency Is Shocking Wall Street.Bitcoin was the first to break into it.In my opinion, it has always been king and will continue to be king.But Wall Street is starting to broaden their horizons.
They don’t care which currency it is.They want profits.If that makes them turn to altcoins, earnings, or cash flow companies, that’s OK.They are working hard to fulfill their mission and obtain excess returns, andThe market seems to have unanimously determined that cryptocurrency-related investment opportunities are one of the best investment directions..
