Crypto Assets Market Enters New Stage: Institutional Investment Leads New Bull Run

Recently, the Crypto Assets market has experienced a strong upward trend, with Bitcoin prices breaking historical highs and continuing to rise. Unlike previous bull runs, the main driving force behind this increase comes from the entry of large institutional capital rather than the frenzy of retail investors.

There are several key factors behind this round of increase:

Firstly, the U.S. stock market performed strongly, with the Nasdaq and S&P 500 indices reaching new historical highs, and the Dow Jones Industrial Average also approaching its peak. This indicates that the overall market risk appetite is rising.

Secondly, the U.S. government has passed a bill to expand fiscal spending, which could lead to long-term damage to the credit of the dollar. Moody's rating agency downgraded the U.S. Treasury bond rating in May.

Thirdly, the regulatory environment is becoming more friendly. The U.S. House of Representatives is reviewing a series of bills related to Crypto Assets, including a stablecoin regulatory framework. At the same time, some individuals with an open attitude towards Crypto Assets have been appointed to important regulatory positions.

Against this backdrop, institutional investors are making significant moves into the Crypto Assets market. In June alone, more than 250 companies announced increased holdings in Bitcoin, totaling 68,000 coins purchased. This includes well-known tech companies, such as the design software company Figma, which invested about 5% of its balance sheet in Bitcoin.

Bitcoin ETFs are also favored by investors. From July 6 to July 11, net inflows into Bitcoin ETFs reached $1.6 billion, with a single-day inflow of $1.18 billion on July 10, marking the second highest in history.

However, there are still some potential risks in the market. The Federal Reserve may unexpectedly raise interest rates, regulatory policies may suddenly tighten, or geopolitical "black swan" events may occur. However, it seems that these risks are not too urgent at the moment.

It is worth noting that Bitcoin is exhibiting a unique dual characteristic. When risk appetite increases, it behaves like tech stocks; while in times of crisis, it has safe-haven properties akin to gold. This flexibility is both an advantage and may also become a weakness.

Overall, the recent bull run in the Crypto Assets market seems to be more solid than previous speculative cycles, as there are corporate balance sheets and regulatory support backing it. However, a market correction may still occur, and the key lies in whether institutional investors can establish effective price support.