Analyst: Bitcoin Price Currently Relying on Strategy for Support, VC Funding Not Yet Massive

According to Blockworks, Empire analyst Jason Yanowitz noted that the current cycle may still be early if we exclude Strategy's (formerly MicroStrategy) bitcoin purchases, and that the current bitcoin price is entirely dependent on the more than $20 billion that Strategy has thrown at it since the end of last year. The market is still in a ‘pure player takeover’ (PvP) phase, and venture capital has yet to come in on a large scale.

Dan Matuszewski of CMS Holdings agrees, pointing out that the effects of the 2022 bear market are still being felt, and that there is a fundamental lack of liquidity in the market, which is preventing substantial inflows, which have yet to come in on a large scale, with the exception of a ‘select few’. The debate about whether or not the top has been reached will intensify. But regardless of the position in the cycle, we need to recognise that the new regulator is just getting started and its policies could be a catalyst for the future.