Bitcoin is now poised for a $100 trillion bomb that could boost the price of Ethereum, BNB, Solana, Cardano, and XRP

Bitcoin is now poised for a $100 trillion bomb that could boost the price of Ethereum, BNB, Solana, Cardano, and XRP

Bitcoin and cryptocurrency prices have been swinging wildly in recent months as the crypto market rebounded from a strong selloff (despite a strong bitcoin price warning from JPMorgan).

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The price of bitcoin fell nearly $50,000 per bitcoin at the start of 2022, falling to just over $30,000 last month before regaining ground. Ethereum, rivals BNB, solana and cardano as well as Ripple’s XRP have also seen extreme volatility as traders panic, although some remain confident the crypto market will rally.

Now, amid another bitcoin and crypto price crash triggered by the escalating situation in Ukraine, outspoken bitcoin and crypto bull Tom Lee has said he expects nearly $100 trillion in wealth ends up flowing into crypto markets – citing the rapidly changing regulatory landscape as a potential catalyst.

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“If I were to say what is the easiest way for large-scale function to happen in crypto, it really forces existing generations of investors in the United States, not new investors, to be really willing to be allocated to bitcoin,” Lee, head of research and managing partner at independent crypto-focused research boutique Fundstrat Global Advisors, said. CNBC.

“And 76% of all the wealth in America is controlled by people over 65. So that’s almost $100 trillion held by people who think bitcoin is still some kind of hobby or things that people who live in the basement play with.”

Lee pointed out that changing regulations are helping to ease the flow of money to bitcoin and the top ten cryptocurrencies by value ethereum, BNB, solana and cardano and Ripple’s XRP.

This week it was reported the Biden administration could issue a long-awaited executive order as soon as next week that would direct government agencies to study bitcoin and other major cryptocurrencies with a view to proposing a government-wide strategy to regulate digital assets .

“I think regulation could actually unlock a lot of that movement,” Lee said. “Just imagine 2% of the $100 trillion allocated to crypto. You could see a five to 10, 15x increase in total network value.”

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For now, the bitcoin and crypto market continues to trade in line with the stock market as traders and investors fear a war between Ukraine and Russia.

“After heightened tension between Russia and Ukraine yesterday, global markets tumbled, with bitcoin falling almost 10%,” wrote Marcus Sotiriou, an analyst at GlobalBlock, a UK-based digital asset broker, in an e-mail note. “All eyes are on the Russian-Ukrainian situation for any short-term market relief.”

Coincidentally, Ukraine also became the latest country to recognize bitcoin and cryptocurrencies in law, following similar moves in Russia and India.

“Ukraine’s balanced approach to crypto regulation shows that domestic digital asset adoption doesn’t have to be a zero-sum game,” said Anto Paroian, chief operating officer of the ARK36 digital asset investment fund, via email.

“This law, which defines clear rights and duties for all market participants, will mean that crypto will be much more adopted in people’s daily lives, in a country that is already a big adopter of crypto technology,” added Sotiriou.