- Bitcoin’s rebound is natural, triggered partly by the massive dislocation to the downside.
- People have figured out that Bitcoin is here to stay, leading to a bit of chasing and FOMO.
The Global Head of Trading at Galaxy Digital, Jason Urban believes that the story for crypto is strong and will continue to be positive. Urban made the statement while explaining the reasons behind the current resurgence in Bitcoin and the rest of the cryptocurrency market.
In an interview show with Bloomberg at the “Hong Kong Web3 Festival, Urban explained that Bitcoin’s rebound is a natural phenomenon triggered partly by the massive dislocation to the downside experienced by the industry. However, he believes that people have figured out that Bitcoin is here to stay, leading to a bit of chasing and the Fear of Missing Out (FOMO) effect.
According to Urban, several institutional investors and TradeFi players who thought Bitcoin was a fad are stepping back into the space. Bitcoin showed impressive price behavior recently, crossing above $30,000 for the first time in 2023. Despite the rally, Urban explained that Bitcoin’s strength is not a function of price action. He considers Bitcoin’s status as an element of how the digital asset behaves under different scenarios.
Urban noted that the currency crypto dispensation 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.
In his opinion, crypto investors consider macroeconomic factors like inflation with a long-term perspective. According to him, the people are more concerned about the economic situation with a six to twelve months’ perspective.
Urban also believes historical price behavior forced many natural sellers out of the market, which plays a significant role in the current crypto market condition. He said:
A lot of the natural sellers have been forced out of the market, so I think that the story for crypto is rather strong, and it will continue to be positive.
The Trading Head believes 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 extinct.