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While Bitcoin has shown a strong recovery in the last two weeks, market maker Wintermute assessed the recent surge and the possibility of a new bull market.
Is the Rise in Bitcoin a Harbinger of a New Bull Market?
While Bitcoin has seen a significant surge in the last two weeks, Wintermute, one of the largest market makers in the crypto sector, stated that there aren’t yet enough signals to say that this movement marks the beginning of a new bull market.
Company analysts stated that price increases alone would not be sufficient for a sustained bull cycle. At this point, the company indicated that a new and strong channel of capital inflow into the crypto market is necessary for a true bull market to begin and be sustained.
According to analysts, in previous bull cycles, ICOs, stablecoins, spot Bitcoin ETFs, and institutional investments fulfilled this function.
“…The market is waiting for something new to trigger the next bull market. For a real bull run to begin and continue strongly in the cryptocurrency market, it requires not only rising prices but also new and large inflows of capital.”
A New Channel for Capital Could Come from RWAs!
Noting that the narratives seen in previous cycles are now old and outdated, Wintermute predicted that the most importantation of real-world assets (RWA)
According to Wintermute analysts, the total value of RWA assets has more than doubled in a year, exceeding $30 billion.
In this context, analysts believe that if this growth in the RWA market continues and accelerates the influx of traditional capital into the blockchain ecosystem, the current rise in Bitcoin could transform into a broader and more sustainable bull market.
*This is not investment advice.
Source: cryptonews.net