Has Bitcoin peaked? Analyst: Bitcoin price supported by micro strategy, VC capital inflow still insu

Recently, there has been a heated discussion in the cryptocurrency market, and many investors have begun to pay attention to a question: "Have we already peaked?" Empire analyst Jason Yanowitz suggested in recent market observations that the current "strange fluctuations" in Bitcoin prices may be related to the massive buying actions of micro strategies (now renamed Strategy), and believes that the bull market cycle in the market may not have ended yet.

Does strategy affect the price of Bitcoin?

Yanowitz pointed out that Strategy has been continuously purchasing Bitcoin in large quantities in recent months, with a cumulative investment of over $20 billion to date. He believes that without the support of this fund, the price of Bitcoin may fall sharply, which could mean that Strategy's buying behavior has made the Bitcoin market cycle different from before, and the market may still be in the early stages of a bull market rather than about to peak.

His viewpoint is also supported by Dan Matuszewski, co-founder of CMS Holdings. Matuszewski believes that the current inflow of venture capital funds in the market is still insufficient, and the overall environment is still in a "PvP (player to player)" game mode, which is different from past bull market cycles. He analyzed:

The market impact of 2021 has not completely dissipated, and liquidity is limited, making it difficult to drive large-scale capital inflows. Venture capital remains a key indicator for evaluating the altcoin market

Cryptocurrency investor Santiago Santos also expressed a similar view, believing that the market still needs to see more capital inflows, and that the current funds are mainly concentrated in a few popular assets, and a comprehensive bull market trend has not yet formed.

Variables in the regulatory environment

In addition to market discussions about whether the bull market has peaked, the regulatory environment in the United States is also an important factor affecting market development. Recently, the US Congress held a hearing on "Operation Chokepoint 2.0" to discuss whether regulatory agencies deliberately suppress cryptocurrency companies from accessing banking services.

Operation Chokepoint 2.0 refers to the practice of the Federal Deposit Insurance Corporation (FDIC) and other regulatory agencies in the United States pressuring banks to prevent them from providing financial services to cryptocurrency companies, making it difficult for many cryptocurrency companies to obtain bank accounts.

According to the testimony of Paul Grewal, the legal director of Coinbase, at the hearing, these actions by regulatory agencies have caused banks to hesitate towards cryptocurrency companies, leaving many businesses unable to access basic financial services. He said:

When banks actively seek permission to provide these services, they are either ignored or subjected to tedious scrutiny until they ultimately give up

In addition, WSPN USA CEO Austin Campbell also pointed out at the hearing that regulatory agencies have chosen to suppress the entire industry due to the misconduct of a few cryptocurrency companies, such as the FTX scandal, which is extremely detrimental to the development of the market.

Although there have been some signs of improvement in the regulatory environment in the United States recently, Yanowitz believes that simply replacing the management of the FDIC is not enough to completely change the situation. The market still needs a clearer and fairer regulatory framework to ensure the sustainable development of the cryptocurrency industry in a legal and compliant environment.

The future direction of the market remains to be observed

At present, there is still disagreement in the market regarding whether Bitcoin has peaked. On the one hand, Strategy's large-scale buying actions may have supported prices, preventing the market from truly entering the late stage of a bull market; On the other hand, the uncertainty of the regulatory environment may still affect investor confidence.

No matter what stage the market is in, Yanowitz It is emphasized that changes in regulatory policies and the dynamics of capital inflows will remain key factors affecting the cryptocurrency market in the future, and investors should closely monitor market dynamics to address potential risks and opportunities.