Crypto.com CEO: Bitcoin’s Surge Fueled by ETF Inflows, Current Correction ‘Healthy’

Crypto.com CEO: Bitcoin’s Surge Fueled by ETF Inflows, Current Correction ‘Healthy’

Crypto News – The value of Bitcoin has surged by over 150% compared to this time last year, with the CEO of Crypto.com attributing much of this growth to the influx of funds into new spot exchange-traded funds (ETFs). Kris Marzsalek, speaking on CNBC‘s Squawk Box, emphasized the significant impact of Bitcoin ETFs on driving the cryptocurrency’s upward trajectory.

Marzsalek described Bitcoin ETFs as highly successful products, noting the correlation between their popularity and the cryptocurrency’s price surge. He highlighted the issue of supply scarcity as a factor influencing Bitcoin’s price dynamics.

The success of these new ETF products is widely acknowledged within and beyond the cryptocurrency industry, evidenced by substantial inflows. On March 12 alone, net inflows into spot Bitcoin ETFs exceeded $1 billion.

Addressing the recent price correction, which saw Bitcoin drop from its peak above $73,000 to around $65,000, Marzsalek characterized it as a necessary adjustment to reduce excessive leverage within the system. He stressed the importance of avoiding abrupt, unsustainable spikes in price, advocating instead for steady inflows into Bitcoin and other cryptocurrencies to support a more sustained market rally lasting 12 to 18 months.

Currently, Bitcoin is trading above $66,000, according to data from The Block.

Marzsalek also offered insights into the market cycle, suggesting that retail investors are positioned similarly to December 2020 or January 2021 in the previous cycle. Drawing on proprietary data analysis, he compared retail participation in the current cycle with past trends, indicating that there is still room for growth.

Regarding market dynamics, Marzsalek noted the dominance of the options market in influencing Bitcoin’s price movements. He observed that current volatility levels are relatively low compared to previous cycles, suggesting a more stable ascent in Bitcoin’s value.

In conclusion, Marzsalek emphasized the long-term potential of Bitcoin as an asset, advocating for a gradual, sustainable growth trajectory that aligns with the vision of holding onto it for decades.