Cryptocurrencies are meeting Wall Street's needs

By Anthony Pompliano, Translated by Shaw Jinse Finance

To Investors.

In financial markets, it's important to avoid complacency. I think Bitcoin is a prime example right now. The digital asset is down 3% over the past month and up only 20% since the beginning of the year. This is far from the eye-popping returns that inspired a generation's pursuit of asymmetric returns in the past.

But the lack of significant price appreciation in Bitcoin over the past eight months doesn't mean that will remain the case for the rest of the year.Fundstrat's Tom Lee said on CNBC that he believes Bitcoin could double in price by Christmas.

Do I think Bitcoin will double by the end of the year? I don't know. Bitcoin has experienced significant volatility in the past, so this isn't impossible, but seeing its total market capitalization increase by approximately $2 trillion in roughly 100 days is truly remarkable. Regardless of the price action, Tom Lee's analysis of why Bitcoin is expected to rise is spot-on. Bitcoin remains the most sensitive macro asset to global liquidity conditions. If the Fed cuts interest rates in September, we would expect Bitcoin's price to rise accordingly. But Bitcoin isn't the only asset Wall Street is watching. This may not be something Bitcoin enthusiasts would like to hear, but we must acknowledge the current state of the market. Over the past month, while Bitcoin has dipped slightly, Ethereum has risen nearly 10%, and Solana has risen over 20%. This is a direct result of Wall Street expanding its interest into a wider range of crypto assets. We've already seen the launch of an Ethereum ETF and the establishment of numerous altcoin digital asset treasury reserve companies. Tom Lee announced Bitmine, a treasury reserve company focused on Ethereum. Not only did he buy and stake Ethereum, he also invested in a company called Eightco Holdings ($OCTO). Why did they do that? Because Eightco Holdings is becoming the treasury reserve company for Worldcoin, which is built on Ethereum. So now there are companies investing in these altcoin ecosystems. Before you argue about how foolish this strategy is, you should know that Eightco Holdings' stock price increased approximately 30-fold in the day after the announcement. I don't know if a company on the Nasdaq has ever gone from $1.72 per share to over $72 in a single trading day, but it happened yesterday. It's insane. This isn't just happening within the Ethereum ecosystem. We saw Sol Strategies, a Canadian public company building Solana's infrastructure, cross-list and begin trading on the Nasdaq. Its ticker symbol is $STKE, which stands for "Equity." I've been an advisor to the company and its CEO, Leah Wald, for some time, so I've seen firsthand how the company has grown. They hold a significant amount of Sol on their balance sheet, which they stake, and they also own multiple validator nodes, enabling them to monetize the Sol staked by others. Similarly, we saw Forward Industries Inc. announce the formation of a new treasury reserve company focused on Solana. The company is backed by Galaxy Digital, Jump Crypto, and Multicoin. Kyle Samani will join as Chairman of the Board. The company has raised over $1.6 billion in cash and stablecoins to execute its strategy. This doesn't happen unless the market opportunity is clear. If you think Wall Street loves companies holding altcoins, wait until they realize these companies can also provide cash flow and income. Again, it doesn't matter what individual investors think; you have to understand what the entire financial market craves: income. We're also seeing asset managers like Coinshares announce IPOs through special purpose acquisition companies (SPACs). They've also achieved valuations exceeding $1 billion. Cash flow from cryptocurrency-related companies is currently highly sought after. So this brings me back to my broader theme. Cryptocurrencies are disrupting Wall Street. Bitcoin was the first to break in. In my opinion, it has always been king and will continue to be king. But Wall Street is starting to broaden its horizons. They don't care about the specific coin. They want income. If that leads them to altcoins, income-generating companies, or cash flow companies, so be it. They are working hard to fulfill their mission and obtain excess returns, and the market seems to have unanimously recognized that cryptocurrency-related investment opportunities are one of the best investment directions.