The crypto market has been experiencing a parabolic rally lately pushing it above the $4.0 trillion mark. This has seen the market peak to $4.1 trillion, surpassing top firms including Apple and Microsoft in market capitalization. Crypto market’s rally is majorly fueled by increased appetite for cryptocurrencies like Bitcoin, Ethereum and other altcoins that have surged in market cap over the last few days.
Amid this crypto market rally, Dom Harz, the co-founder of BOB (the Gateway to Bitcoin DeFi), believes that Bitcoin is ushering in a new era of mainstream adoption. Let’s see the reason behind Dom’s statement.
Institutions Play a Big Part in BTC’s Rally; Dom
Strong sentiment now prevails across the crypto market, especially for Bitcoin and Ethereum. But while both institutional and retail players have a say in the current market, Dom Harz believes that institutional drive is what is backing BTC’s rally at the moment. For context, major firms including Strategy and Metaplanet have been at the forefront of pulling BTC out of the ruins.
With the price of Bitcoin falling in early August, Metaplanet bought BTC worth around $54 million, a move that bolstered sentiment across the market. The firm now holds a total of 18,113 BTC worth over $2.1 billion. Strategy, on the other hand, holds a total of 628,946 BTC per data by Bitcoin Treasuries.
Besides, US Bitcoin Spot ETFs flows also paint a rosy picture with flows now recording a 5-day streak of inflows. According to data by SosoValue, BTC Spot ETF recorded a total of $65.95 million inflows on August 12.
These inflows have bolstered Bitcoin’s price, pushing at above $120,000. The price of BTC now sits at $120,553 marking a 1.9% surge on the day, according to Coingecko. Furthermore, Dom Harz echoed that BTC ETF inflows, coupled by Bitcoin DeFi, could push the coin to a new all-time high.
“Bitcoin is sitting near $120k and could reach an all-time-high again in the near future, with institutions and Bitcoin DeFi playing a large part in that rally. Since January 2024, spot ETFs have accumulated over 1.2 million BTC, accelerating adoption and reshaping the market, and that figure is set to grow even more,” Dom remarked.
The statements by BOB’s co-founder highlight the strong optimism, spanning Bitcoin’s future. With treasury companies loading up and Bitcoin ETF inflows surging, BTC could be primed for an even more parabolic rally.
What’s Next for Bitcoin as Institutions Load Up?
In his commentary, Dom Harz noted that Bitcoin is moving deeper deeper into the financial mainstream. This is highlighted by the strong accumulation by firms who see its potential, especially following Trump’s opening up the US 401(k) retirement plan to crypto. While this is boosting BTC’s price performance, Dom believes that a bigger transformation lies ahead.
“As institutional inflows continue to build, Bitcoin is moving deeper into the financial mainstream. The price impact is clear, but the bigger transformation lies ahead, the rise of Bitcoin DeFi,” he said.
The BOB co-founder attributes this to the fact that the institutions will seek to put their BTC holdings to work. Such moves will drive innovation and accelerate development across Bitcoin DeFi. In that sense, growth in BTC DeFi will become a key player in cementing BTC’s role; not only as a store of value but also as a fully functional layer in the global financial system.
[…] up debate with various experts now believing that crypto is approaching mainstream adoption. As reported by Blockchain News recently, Dom Harz – the co-founder of BOB, for instance argued that […]