As a result, expectations are growing for the institutionalization of virtual currencies. If the wave of institutionalization spreads, mainly in the United States, it is expected that the virtual currency market will become even more active as an inflow of institutional funds increases.
As of 4:30 p.m. on the 15th, Bitcoin was trading at $117,033 on the cryptocurrency marketplace CoinMarketCap, down 4.35% from the previous day.
The previous day, it surpassed $120,000 for the first time in history, but it has since reverted some of its gains, but is still up 8% from seven days ago. The altcoin (virtual currency excluding Bitcoin) market is also positive.
XRP surpassed $3 for the first time in five months in the morning of the same day. Ethereum (ETH), the second largest virtual currency by market capitalization, also recovered $3,000 for the first time in five months last week, and is currently trading at $1,000.
It is trading in the range of $2,900 to $3,000. The reason for the tailwind in the virtual currency market is analyzed to be the recent inflow of funds and increased investment from institutional investors.
With the incorporation of cryptocurrencies into the institutional sphere, cryptocurrencies seem to be established as strategic investment assets for companies.
"Institutions have increased their investments in major coins such as Bitcoin and Ethereum," he said, "which is in contrast to individual investors who have mainly invested in meme coins and small and medium-sized coins."
American asset management firm Bernstein said, "Institutions are leading the bull market," explaining, "Institutional confidence in blockchain and cryptocurrencies is higher than ever."
The inflow of funds from these institutions was also reflected in the spot exchange-traded fund (ETF) market. In the two days from the 10th (local time), a total of $2.1 billion was invested in Bitcoin spot ETFs.
The Ethereum spot ETF also recorded net inflows for the seventh consecutive trading day as of the 14th (local time).
Kim Min Seo, director of the Covid Research Center, said, "The US government is suing.
"The Ethereum Foundation is undergoing various changes, including a change in leadership and an update to its roadmap," he said.
Decentralized finance (DeFi)-related assets such as Sui (SUI) also rose on expectations of regulatory reform and ETF approval. In addition, the U.S. Congress is expected to begin full-scale legislative discussions on virtual currencies.
The market's expectations are growing even more. The US Congress designated this week as "Crypto Week" and passed three bills called the "Virtual Currency Structuring Bill (Clarity Act)," the "Stable Coin Bill," and the "Virtual Currency Token Bill."
The bill will discuss the Genius Act and the Central Bank Oversight of Virtual Currencies Act (CBDC Act). This is the first time that the U.S. Congress has designated a specific week for discussion on virtual currencies.
Due to the legal nature of virtual currencies, the Clarity Act stipulates that securities are governed by the U.S. Securities and Exchange Commission (SEC) and digital products are governed by the Commodity Futures Trading Commission (CFTC).
The Genius Act stipulates requirements for stablecoin issuers, reserve requirements, audit obligations, etc. As the stablecoin craze sweeps the globe, the Genius Act will help to strengthen the US stablecoin market through its institutionalization.
The CBDC Act includes provisions banning the issuance of a central bank digital currency (CBDC) by the U.S. Federal Reserve System (Fed).
The industry believes that the relevant bills will be passed quickly, as the US has shown a strong will to develop the virtual currency industry since the inauguration of the Donald Trump administration earlier this year.
It is expected that if the trend towards monetary institutionalization spreads, the inflow of institutional funds will accelerate further, which will have a positive impact on virtual currency prices.
Kim said, "Expectations for Crypto Week are driving the rise in cryptocurrency prices.
"The passage of the Clarity Act and the Genius Act will provide legal clarity and have a positive impact on the market."
Kim said, "In particular, the Clarity Act, which defines the jurisdiction of the SEC and the CFTC, is a safeguard against the SEC's indiscriminate litigation of the industry.
"This will act as a catalyst for growth, which is good for altcoins," he said, "If the government, legislature, and industry all move quickly to embrace virtual currencies and there are no other uncertainties, the second half of this year will be a very positive one (for the virtual currency market)."
It's going to increase significantly."
2025/07/18 09:40 KST
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