"That even a crypto CEO would say that his industry is headed for a potential crash speaks to the frothiness in the crypto markets over the past year. Since January, Bitcoin has repeatedly notched all-time highs and the total market capitalization of all cryptocurrencies has crossed the $4 trillion for the first time. That's not to mention blockbuster IPOs from the stablecoin issuer Circle and the crypto exchange Bullish."
"While some of that enthusiasm stems from Bitcoin's correlation with the stock market-the S&P 500 has also set new records since President Donald Trump's inauguration in January-pro-crypto regulatory changes in the U.S. are also a likely factor for crypto's recent surge. But all bubbles eventually pop, and there are already signs of a potential burst, including declining enthusiasm in crypto's newest trend: digital asset treasuries, or public companies that amass crypto on their balance sheets to boost their share prices."
Cryptocurrency markets exhibit persistent volatility and recurring speculative bubbles since Bitcoin emerged in 2009. Kraken co-CEO Arjun Sethi characterizes recent activity as bubble-like on a quarterly basis while noting a longer-term upward slope over fifteen years. Bitcoin has repeatedly reached all-time highs and total crypto market capitalization topped $4 trillion, supported by major IPOs such as Circle and Bullish. Correlation with the S&P 500 and pro-crypto regulatory shifts in the U.S. have contributed to recent gains. Emerging corporate practices include holding digital asset treasuries to boost share prices, a strategy that offers exposure but raises concerns of froth and potential collapse.
Read at Fortune
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