Chainlink founder Sergey Nazarov has turned his attention to a new group of cryptocurrency buyers. In a recent interview, he said that the current cycle is unique precisely because of the large number of new types of investors entering the market. The Bitcoin price will no longer be driven only by the “street”.
Sergey Nazarov believes that this cycle is special
For over a decade, the bitcoin price has been rising because coins were bought by the “street” or more aware investors familiar with cryptocurrencies. In an interview with Bloomberg, Nazarov said that today the blockchain threshold is also crossed by institutions.
The question must be asked who are the new buyers in this cycle (…), this is a global financial system that constitutes a very, very large group of new buyers
– he said.
Nazarov further explained that the recently approved Bitcoin ETFs (Exchange Traded Funds) are just the beginning of a process that will make it easier for giants to access coins.
The Bitcoin ETF is just an initial offering that allows the global financial system to have the basic investment rails for Bitcoin in structures it finds convenient.
– he said.
Tokenization
Nazarov also predicts that tokenization of assets will be the next main trend on the cryptocurrency market:
The next step is asset tokenization, where banks see all the inflows (capital) into ETFs and then create assets to compete with ETFs or to capture some of that capital.
And in fact, since the approval of Bitcoin ETFs on January 10, there has been a sharp inflow of funds into the cryptocurrency market. On February 26, Cointelegraph reported that a total of USD 598 million had flowed into cryptocurrency investment products in the seven days preceding that date.
However, all this fuels increases not only in BTC, but also in the memecoin market. Pav Hundal, chief analyst of the Australian cryptocurrency exchange Swyftx, told Cointelegraph that the recent increase in their valuations was also the result of strengthening their fundamentals:
We expected Shiba Inu and Dogecoin (as networks) to be faster due to the size of their communities. We are also closely watching the impact of upcoming updates to the Shib Inu mainnet, which will begin burning tokens during transactions
– he said.
