Is Crypto In Trouble? Bitcoin Insider Reveals “What’s Next?”

You've seeing kind of Bitcoin level off Here and really limit itself in terms of How much more interest can be drawn in The wake of the Advent of the ETF and in The wake of the having what's the next Catalyst and is Bitcoin being suppressed At these levels kind of a cap on how big The industry could grow bitcoin's price Has leveled off is Bitcoin being Suppressed at these levels with the Bitcoin ETF launch and Bitcoin having Behind us is there a cap on how big Bitcoin can grow not to mention crypto At large breaking news grayscale just Withdrew their Futures ethereum ETF Application what is going on with the SEC going after Kraken coinbase Unis Swap metamask now Robin Hood we need Some real answers Alex Thorne an Insider Galaxy digital's head of research just Revealed what's next for this industry Listen closely we're joined Now by Alex Thorne Galaxy digital head of research Alex we were talking with Kavita a Little bit earlier about the Uncertainties that are created by the Regulatory environment and curious from Your perspective on limitations here you Know stable coins are the closest thing To real money I guess but what about Everything else being built on these Chains yeah hey shanali hey Tim great to Be back um it's a great question there's A lot of stuff being built I think defi

Is still a huge huge sector inside Crypto that has a lot of regulatory Uncertainty and a lot of opportunity I Think if you look at where the SEC has Been very focused in the US it's Primarily around questions of whether You've issued tokens that they think are Unregistered Securities or whether You're facilitating the trading of Tokens they think are unregistered Securities so so effectively acting what They say as an unregistered National Securities Exchange this is a huge Question for defi I would say most of The inquiries and Wells notices and Enforcements that have been brought by The Securities and Exchange Commission Don't really touch the Bitcoin world and So that I think uncertainty about the Regulatory uh standing of ethereum and Its applications has contributed to Bitcoin's outperformance during this Bull run Gary Gensler and the SEC has Created a chilling effect on the crypto Industry in the US it's hard to tell how Much of your focus today is on the stock Market RIT large versus the world of Crypto and trying to figure out the Future of ethereum and other things how Do you see it well I I see it this way We oversee $110 trillion Capital Market About half of that's the stock market Half as you might know is the the bond Markets and other markets crypto is a

Small piece of aror row markets but it's An outsize piece of the scams and frauds And problems in their markets without Prejudging anyone token much of this Field is non-compliant with the Protections of air Securities laws and With that we're seeing things I never Thought we'd see grayscale withdrawing Their Futures ethereum ETF this has Confused even the experts because you Remember it was the Bitcoin Futures ETF Approval that was pivotal in allowing The spot Bitcoin ETFs to get approved so Why would grayscale do this in my mind Might as well make the SEC write up an Approval or denial for an ethereum Futures ETF and go from there maybe the SEC spoke with grayscale about this make Sure you subscribe this is a developing Story we keep you updated on everything Crypto on a daily basis subscribe so I Guess bitcoin's safe but the rest of the Crypto industry might not be safe here Alex Thorne explains how there is much More Bitcoin ETF demand set to come how Do you think about how this all impacts Kind of projects moving forward if we're Thinking about all the uncertainty in The industry you're saying Bitcoin is Kind of exempt right now from a lot of That uncertainty does that just create More money flowing into Bitcoin and what Is the case for that I mean you've seen Kind of Bitcoin level off here and

Really limit itself in terms of how much More interest can be drawn in the wake Of the Advent of the ETF and in the wake Of the having what's the next Catalyst And is Bitcoin being suppressed at these Levels kind of a cap on how big the Industry could Grow a pointed question I appreciate it Very very much I think that we've had Such a a an extreme rise I mean Bitcoin's up over 280% since January 23 It's up over 50% this year it's Reasonable for any asset that has risen That much to to cool off a bit frankly I Mean it's almost humorous because I've Been I was on the show over a year ago And we were talking when Bitcoin was About $22,000 about the prospects Obviously a lot can change for Bitcoin Um from Catalyst standpoint you have These advisor platforms and wealth Management platforms that really haven't Turned on selling Bitcoin ETFs on an Unsolicited basis yet when we predicted In October that there would be 13 or 14 Billion in net inflows into these ETFs That was solely relying on those wealth Management platforms and advisors and Instead we've seen about that much com In pretty much through brokerage trading Platforms so I think you'll see a lot More uh interest obviously the macro Situation um is part of that I think if Rate obviously with rates and if and if

We see some easing on the monetary side Risk assets in general will benefit um I Think broadly to your to the first part Of your question I think you know when When you think of what Bitcoin Developers in the ecosystem are working On now um it's getting much more Interesting on layer 2s on defi I think That could drive more interest in the Sort of Bitcoin investment case Beyond Simply Bitcoin as digital gold or a Scarce you know non-sovereign monetary Asset but I think that that Core case Remains very strong I would say it is Stifling to the prior guest Point some Builders and investment in the US that Being said in q1 I think over $2.5 Billion dollars was invested by venture Capitalist into 600 plus uh crypto Related deals the vast majority uh I Should say the vast plurality of both Deals and dollars invested in companies Founded and headquartered in the United States so the US is still the leader um Policy makers just need to be wary that They don't stifle what could be major Innovation for the future Alex what About the recent flows into the ETFs What are they telling you about the Direction moving Forward I would say that um obviously we Saw significant outflows uh over you Know the prior two weeks as Bitcoin you Know dipped below 60,000 um I don't

Personally believe that the outflows Necessarily caused the dip I think if You look at the flows versus The Daily Float on bitcoin um they're still not Really the majority at all um I think You saw some folks take gains perhaps And that accounts for some of the Outflows but something like 90 plus% of The capital that came into those ETFs Between February and and April did not Exit last week so I I happen to think That the ETF buyers um particularly Later when they're comprised primarily Of advisers and wealth managers will be Um you know sort of stronger hands than Short-term Traders and and I think I Think the outflow showed that Bitcoin Has clear skies for now crypto is being Suppressed in my opinion but will come Back stronger than ever you cannot keep Decentralized permissionless protocol Calls that are open to anybody to use Down now the way I see it this year Things are still looking pretty good Going into November this year 2024 going Into the US elections I'm bullish and Bitcoin's going to lead us but the big Question on my mind is 2025 to be Bullish on bitcoin and crypto in 2025 does it rely on who is elected US President who would be a better President for crypto what do the experts Think hey Alex the regulatory regime Could change in early November with the

Election I'm wondering from your Perspective as Galaxy digital head of Research Which presidential candidate Out there right now is best for the Crypto Community I think in general um Any kind of change in posture at the Major Market Regulators would be Beneficial whether that comes uh due to Retirement or a new Administration um Coming into office I think it it's sort Of remains to be seen I think even in The case that the current Administration Stays we're likely to see some changes Uh that are beneficial you've got Bipartisan support in Congress for Changes in the way regulator Regulators Have approached this industry um but There's no doubt that that Republican Allies in the house and in the Senate Are more favorable to uh digital assets So essentially you're saying anyone Who's there apart from who's there right Now would be an Improvement I mean look is that I'm hear I think it could improve in in any case But the the prior Republican Administration was was more amendable And I think now you've seen whether it's From candidates for the Republican Nomination independent candidates they There there's a swath of um candidates Across uh the sort of whole ecosystem Even even Democratic Challenger that are More favorable to digital assets than

The current Administration