Market Review July 2023

Recently NYDIG did their 2023 Q2 Bitcoin Market Review. You can find a link to that video HERE. I encourage anyone reading this to go and watch it in full as they cover a variety of topics from a myriad of perspectives.

Below though are some highlights from the review with several key developments that professionals in traditional finance should be aware of when looking into the digital asset space.

Institutional Adoption: Bitcoin has witnessed a significant surge in institutional interest and investment. Major financial institutions, hedge funds, and corporations have started allocating a portion of their portfolios to Bitcoin as a hedge against inflation and economic uncertainty thus bringing greater legitimacy and stability to the cryptocurrency market.

Institutions like Blackrock, Fidelity and J.P. Morgan are making great strides into the space with the filing of spot ETFs and offering more options for custody. They aren’t in the business of losing money so those in traditional finance should take note.

Regulatory Landscape: Governments and financial regulatory bodies worldwide are taking a closer look at cryptocurrencies, including Bitcoin. Policymakers are working to establish clearer guidelines and frameworks to address potential risks and ensure investor protection.

Savvy RIAs are keeping a close eye on these regulatory developments, as they can impact the operational and compliance aspects of engaging with Bitcoin. With greater clarity comes greater opportunity.

Technological Advancements: Bitcoin's development community is continuously working on upgrading the protocol to improve scalability, privacy, and security. Notably, the implementation of the Taproot protocol enhances transaction efficiency and privacy features. Keeping up to date with these technological advancements is essential for financial professionals to assess the potential impact on Bitcoin's utility and future use cases.

Integration of Crypto Services: Traditional financial institutions are increasingly offering cryptocurrency-related services to meet client demands. As alluded to above, Fidelity, Schwab and J.P. Morgan just to name a few are looking deeper into how, when and to what extent to offer custodial and OTC services along with futures and options as well.

Bitcoin Volatility: Bitcoin has shown both impressive price appreciation as well as strong swings in volatility over the years. This slight decline trendline in bitcoin’s volatility is likely attributed to its mainstream adoption. With public companies and institutional investors embracing Bitcoin, reducing its reputational risk. As a consequence, Bitcoin is becoming more legitimate in the eyes of traditional markets resulting in more stability. If this trend continues in the coming years, Bitcoin’s volatility would decrease further.

We know there’s so much information about Crypto Assets and lots of investors and advisors are just beginning to gather knowledge on this topic. As Crypto gains adoption as a mainstream asset class, there has never been a more opportune time to get invested. Fortunately, we’ve done a lot of the groundwork. All you need to do is fill out this form to get started.

Market Review July 2023

"We have elected to put our
money and faith in a mathematical
framework that is free of politics
and human error."

— Tyler Winklevoss
CEO Gemini Trust Company, LLC

"Paper money eventually returns
to its intrinsic value: zero."

— Voltaire

"Bitcoin changes absolutely everything,
I don't think there is anything more important
in my lifetime to work on."

— Jack Dorsey

"I do think Bitcoin is the first [encrypted money]
that has the potential to do something
like change the world."

— Peter Thiel

"Innovation is a driving force in financial services,
and digital assets will certainly be a significant
contributor in our industry going forward."

— Bernie Clark
Managing Director Charles Schwab

"The central bank must be trusted not to debase the currency,
but the history of fiat currencies is full of breaches
of that trust and that notion is the issue."

— Satoshi

"The Bitcoin story is very easy, it's supply and demand.
Bitcoin's supply is growing at around 2.5% a year,
and the demand is growing faster than that
and there's going to be a fixed number of them."

— Bill Miller
Mutual Fund Legend

"This is the one asset class in modern history
where average people have had a shot at it before
companies and before hedge funds and before billionaires…"

— Andy Edstrom
Author, “Why Buy Bitcoin”

"And that, dear reader, is the investment thesis
for this new asset class: adding digital assets
to your portfolio can help you obtain higher returns
while actually lowering your investment risk."

— Ric Edelman, CFP
Author “The Truth About Crypto”

"I am a huge believer in this technology.
The efficiency benefits in the financial system
and otherwise from tokenization are immense."

— Jay Clayton
Former SEC Chairman

“I reject the role of gatekeeper of innovation
—a role very different from and, indeed, inconsistent
with our mission of protecting investors, fostering capital formation,
and facilitating fair, orderly, and efficient markets."

— Hester Peirce
SEC Commissioner

House of Representatives Financial Services
Committee Testimony, Regarding Crypto:
“appears to have staying power as an asset class...”
“We do see payment stablecoins as a form of money.”

— Jerome Powell
Federal Reserve Chairman

“We are a believer of the digitization of products...
if we can create tokenization of assets and securities,
and that is what Bitcoin is, it could revolutionize finance.”

— Larry Fink, CEO BlackRock
World's Largest Asset Manager

“The highest form of ignorance is when you reject something you
don't know anything about.

— Wayne Dyer

"We have elected to put our money and faith in a mathematical framework that is free of politics and human error." — Tyler WinklevossCEO Gemini Trust Company, LLC

"Paper money eventually returns to its intrinsic value: zero." — Voltaire

"Bitcoin changes absolutely everything, I don't think there is anything more important in my lifetime to work on." — Jack Dorsey

"I do think Bitcoin is the first [encrypted money] that has the potential to do something like change the world." — Peter Thiel

"Innovation is a driving force in financial services, and digital assets will certainly be a significant contributor in our industry going forward." — Bernie ClarkManaging Director Charles Schwab

"The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust and that notion is the issue." — Satoshi

"The Bitcoin story is very easy, it's supply and demand. Bitcoin's supply is growing at around 2.5% a year, and the demand is growing faster than that and there's going to be a fixed number of them." — Bill MillerMutual Fund Legend

"This is the one asset class in modern history where average people have had a shot at it before companies and before hedge funds and before billionaires…" — Andy EdstromAuthor, “Why Buy Bitcoin”

"And that, dear reader, is the investment thesis for this new asset class: adding digital assets to your portfolio can help you obtain higher returns while actually lowering your investment risk." — Ric Edelman, CFPAuthor “The Truth About Crypto”

"I am a huge believer in this technology. The efficiency benefits in the financial system and otherwise from tokenization are immense." — Jay ClaytonFormer SEC Chairman

“I reject the role of gatekeeper of innovation —a role very different from and, indeed, inconsistent with our mission of protecting investors, fostering capital formation, and facilitating fair, orderly, and efficient markets." — Hester PeirceSEC Commissioner

House of Representatives Financial Services Committee Testimony, Regarding Crypto: “appears to have staying power as an asset class...” “We do see payment stablecoins as a form of money.” — Jerome PowellFederal Reserve Chairman

“We are a believer of the digitization of products... if we can create tokenization of assets and securities, and that is what Bitcoin is, it could revolutionize finance.” — Larry Fink, CEO BlackRockWorld's Largest Asset Manager

“The highest form of ignorance is when you reject something you don't know anything about. — Wayne Dyer