- On Tuesday, Bitcoin hovers below $85,000, experiencing a nearly 3% increase for the day.
- Anthony Yeung from CoinCover mentions that Bitcoin is just as exposed as other key assets given its increasing correlation with US stocks.
- The macroeconomic situation in the US continues to be highly unstable due to inflation concerns, potentially adding to Bitcoin’s volatility.
Currently, Bitcoin is trading below the $85,000 threshold, maintaining close to 3% gains on Tuesday in anticipation of Donald Trump’s Liberation Day. Sentiment among crypto traders remains cautious, with the Fear & Greed Index reading 34 on a scale from 0 to 100.
Anthony Yeung, the Global Head of Strategic Development at CoinCover, shared insights on the evolving narratives within the crypto market as we approach 2025. He commented on the SEC vs. Ripple litigation, the potential for altcoin ETF approvals in the latter half of the year, Bitcoin’s growing link to US equities, and issues surrounding crypto-related crime, among other topics.
Q. What’s your perspective on the chances of altcoin crypto ETF approvals in the latter half of 2025?
The SEC’s green light on ETH ETFs in 2024 highlights a burgeoning demand for crypto ETFs that extend beyond just Bitcoin. The remarkable performance of the largest ETH spot ETF, ETHE, which currently represents 2% of Ethereum’s market cap, signifies growing institutional interest and implies that the market is ready for a wider array of crypto ETFs. With this momentum, we expect that ETFs for more established and mainstream altcoins may begin to secure approvals as we progress through 2025, providing investors with regulated and secure access to diverse crypto assets.
Q. What are your thoughts on the conclusion of the SEC lawsuit against Ripple and its implications for the industry?
The immediate outcome of the SEC’s case against Ripple ending was a brief surge in XRP’s price. However, the prevailing market sentiment indicates that the anticipated conclusion of the lawsuit was already factored into the price. In the long run, this could create pathways for an XRP ETF, but the key question of whether XRP is classified as a security remains unsettled. The ruling established a division where retail transactions are not viewed as securities, whereas institutional ones are, which leaves an air of uncertainty. The industry desires regulatory clarity, as it fosters stability, but this result has added ambiguity rather than resolving it.
Q. Given Bitcoin’s increasing correlation with tech stocks and US equities, do you believe the safe haven narrative is no longer applicable? How does this affect BTC adoption among retail investors?
Bitcoin has become just as susceptible to global financial instabilities as other major assets. Nevertheless, its stronger correlation with various indices provides some predictability, which could potentially enhance its adoption among retail investors.
Q. What are your views on the significance of meme coins, and do you think they will hold a position within the crypto category this year and next?
Meme coins have traditionally lacked real utility; they embody the speculative edge of the high-risk, high-reward segment of the crypto market. Demand for these coins is unlikely to wane, as they attract investors with specific risk appetites. That said, the meme coin arena is also plagued by scams, which exploit the hopes of investors seeking quick returns. High-profile fraudulent cases, including rug pulls, continue to negatively impact the overall perception of crypto as a credible asset class.
Q. What do you see as the primary challenges facing the crypto industry in 2025?
Security continues to be a pressing concern for both the crypto sector and its investors. The consistent occurrence of hacks, scams, and fraudulent activities undermines trust, not only among retail investors but also in the institutional realm. Research indicates that security issues are significant hurdles to mass adoption; once investors face fraud, many tend to abandon crypto altogether. Tackling these challenges is vital, not just for user protection but also for ensuring the industry’s long-term viability. If security threats remain unmanaged, we may see increased regulatory oversight, reduced investment, and slower adoption rates overall.
Q. What are your comments regarding the recent surge in crypto crime, including the $1.5 billion hack on Bybit, and how does this affect the acceptance of crypto as a viable asset class?
The $1.5 billion breach at Bybit serves as yet another stark reminder of the security issues still present in the crypto space. Such high-profile hacks erode confidence and strengthen the perception of crypto as a risky investment area. For crypto to gain wider acknowledgment as a legitimate asset class, platforms must enhance their security frameworks, regulators must clarify their guidelines, and investors must receive better protections.
Q. Do you think we are heading towards a bull market? Or does the recent Bitcoin price correction signal the start of a bear market?
We avoid making predictions about price movements. However, regardless of whether this correction indicates the end of the bull market, a bear market will eventually occur. Now is the time to formulate strategies that will keep retail investors engaged during upcoming price downturns.
Q. What do you believe are the key narratives in the crypto space for 2025?
Security for retail investors will remain at the forefront, as concerns surrounding hacking, fraud, and the protection of assets continue to shape the industry. Likewise, ensuring security for institutional players is crucial as they look to navigate risks while increasing their involvement in crypto. Lastly, platform security will be critical, as exchanges and service providers must enhance their safeguards to protect user funds. The stance of the US government regarding crypto and subsequent developments will also play a pivotal role in determining the industry’s immediate direction.
Q. Will institutional investors boost their interest in crypto investments, adding tokens to their balance sheets and investing in altcoin ETFs, or should we expect a retreat in ETF adoption?
Institutional demand for crypto has been growing, and there’s no indication that this trend will diminish, particularly with the increasing appeal of ETFs. Recent high-profile breaches have underscored that institutional investors face similar security threats as retail investors. ETFs provide a secure means of mitigating risk while gaining exposure to crypto, but until such options become ubiquitous, institutional players will need to invest directly and manage the associated security challenges themselves.
Q. What are your thoughts on the US macroeconomic environment and its influence on Bitcoin and crypto prices?
Buckle up; the US macro situation remains highly unpredictable, with inflation concerns, interest rate choices, and regulatory changes all influencing crypto markets. Historically, shifts in monetary policy have had a direct effect on crypto values, and any adjustments from the Federal Reserve could lead to significant volatility, making the macro landscape a critical factor in Bitcoin’s future path.