“The Crypto Bill is the ‘oil’ of the on-chain economy” – Coinbase executive discusses the importance of regulation!
JPMorgan compares Bitcoin to gold and boldly predicts a theoretical price of $170,000!
As investor sentiment shifts and Bitcoin bulls retreat, outflows from spot BTC ETFs accelerate!
Ray Dalio warns against the Fed’s stimulus measures, expressing concerns about an economic bubble!
Former President Trump positions the US as a “Bitcoin superpower” and warns of competition with China!
Let’s analyze the news on the global economy and cryptocurrencies and consider economic trends together! This Friday, November 7th, we’ll discuss today’s cryptocurrency news and on-chain market conditions. Now, let’s take a look at the 24-hour data headlines for the cryptocurrency market.
First, a Coinbase executive said, “The Crypto Bill is the ‘oil’ of the on-chain economy.”
Cryptocurrencies like Bitcoin and Ethereum are not simply digital assets; they support the “on-chain economy,” which serves as the foundation for a variety of services, including decentralized finance and smart contracts. A Coinbase executive described the smooth operation of this on-chain economy as requiring an appropriate regulatory environment, which he described as “oil-like lubrication.”
The background to this is the progress of cryptocurrency-related bills in the U.S. Congress. These bills seek to strike a balance between strengthening market transparency and investor protection while avoiding excessive regulation that would hinder growth. Previous examples include the establishment of regulations following the ICO boom in 2017, which led to market maturity. Careful discussions are continuing this time, based on that experience.
Market participants are increasingly hopeful that clear rules will lower barriers to entry for institutional investors and revitalize the on-chain economy as a whole.
Next, we turn to JPMorgan’s Bitcoin assessment.
In its latest report, JPMorgan noted that Bitcoin (BTC) is currently significantly undervalued and is “an attractive asset compared to gold.” They estimated Bitcoin’s fair value at approximately $170,000, pointing out a significant discrepancy with the market price.
This assessment focuses on similarities with gold, such as its scarcity and role as a store of value. While gold is valued at approximately $2 trillion, Bitcoin has a limited supply of 21 million and is trusted by blockchain technology. JPMorgan suggests this suggests potential for future price increases.
However, market participants strongly advocate caution in the short term due to macroeconomic and regulatory risks.
The third issue is the retreat of Bitcoin bulls and the worsening outflow of funds from spot BTC ETFs.
Recently, the market has become increasingly risk-averse due to macroeconomic uncertainty and concerns about interest rate hikes. As a result, many Bitcoin bulls have begun to take profits and reduce risk. Significant outflows, particularly from spot Bitcoin ETFs, indicate a cooling in market sentiment.
In similar situations in the past, a temporary correction has sometimes been followed by a new upward trend, but this time, future developments will likely depend on the monetary policy of the US Federal Reserve (FRB).
The fourth point is a warning from renowned investor Ray Dalio.
Dalio expressed strong concern about the Fed’s massive monetary stimulus measures, saying they are “pushing the economy into a bubble state.” He has previously warned about the risk of asset bubbles and their collapse in such an excess liquidity environment, and has urged market participants to adopt a cautious approach.
This comment has had a particularly significant impact on the stock and cryptocurrency markets, and many investors are paying close attention to Dalio’s views. This is an important perspective when considering Fed policy and market reactions.
Finally, we will touch on the comments of former President Trump.
Trump positioned the United States as a “Bitcoin superpower” and warned of intensifying competition with China. Bearing in mind the Chinese government’s promotion of the digital yuan and its aggressive stance on cryptocurrency technology development, he argued that the United States should also strengthen its strategic efforts to establish dominance in the cryptocurrency field.
Political factors include growing attention on the cryptocurrency market as part of the battle for technological dominance with China. This development could also have an impact on regulatory policy and market structure, so it’s worth closely monitoring.
Now, there are three important signals to bear in mind from this series of news.
First, while market expectations for regulatory reform are rising, the details of such reform could polarize growth, leading to either accelerated growth or stagnation. The phrase “crypto bill = oil for the on-chain economy,” particularly from Coinbase executives, seems to imply optimism.
Second, JPMorgan’s high fair value estimate of $170,000 suggests that long-term growth expectations for cryptocurrencies remain strong. However, continued attention is required regarding macro factors and the liquidity environment.
Third, market sentiment is likely to enter a temporary correction phase due to ETF outflows and caution expressed by experts such as Dalio. Add in the geopolitical implications of former President Trump, and the overall market is in a complex phase.
That concludes today’s news highlights. If you find this channel valuable, please share, follow, and turn on notifications.
See you tomorrow.
