Galaxy Digital’s Global Head of Trading, Jason Urban, has expressed his belief that the future of crypto is bright and positive. Urban made this statement while discussing the reasons behind the current surge in Bitcoin and other cryptocurrencies. In an interview with Bloomberg at the Hong Kong Web3 Festival, Urban explained that Bitcoin’s recent rebound is a natural occurrence, partly due to the significant downturn experienced by the industry. However, he believes that people have now realized that Bitcoin is here to stay, leading to a bit of chasing and the Fear of Missing Out (FOMO) effect.
Urban stated that several institutional investors and TradeFi players who once believed that Bitcoin was just a fad are now stepping back into the space. Bitcoin has shown impressive price behavior recently, crossing above $30,000 for the first time in 2021. Despite the rally, Urban explained that Bitcoin’s strength is not a function of price action. Instead, he considers Bitcoin’s status to be an element of how the digital asset behaves under different circumstances.
Urban noted that the current crypto market reflects people stepping into the market meaningfully, with those who have missed some of the rallies trying to manifest that in the options space, leading to some institutional activity on the options side of the crypto market. He believes that crypto investors consider macroeconomic factors like inflation with a long-term perspective. According to him, people are more concerned about the economic situation with a six to twelve months’ perspective.
Urban also believes that historical price behavior forced many natural sellers out of the market, which plays a significant role in the current crypto market condition. He stated that the options market is an alternative for investors who can no longer access the leverage provided by erstwhile lenders. The crypto lending sector was once plagued with negatives and has almost gone extinct.
Galaxy Digital’s Global Head of Trading’s bullish sentiment towards crypto is not surprising. The cryptocurrency market has experienced a significant upswing in the past few months, with Bitcoin leading the charge. However, Urban’s comments suggest that the current rally is not just a temporary blip but rather a long-term trend. The fact that institutional investors are stepping back into the space is a clear indication that the crypto market is maturing.
Moreover, Urban’s comments suggest that the crypto market is not just driven by price action but rather by the behavior of the digital asset under different circumstances. This is an essential point to consider as it suggests that the crypto market is not just a speculative bubble but rather a legitimate asset class. As more institutional investors step into the space, it is likely that the crypto market will continue to mature and become more stable.
In conclusion, Urban’s comments suggest that the story for crypto is strong and positive. The fact that institutional investors are stepping back into the space is a clear indication that the crypto market is maturing. As more investors enter the space, it is likely that the crypto market will continue to become more stable and legitimate. Although there are still risks associated with investing in cryptocurrencies, Urban’s comments suggest that the long-term outlook for the crypto market is bright.
