Amid the crypto market enthusiasm, BlackRock CEO Larry Fink recently stated that Bitcoin has the potential to reach US$700 thousand. However, paradoxically, the price of Bitcoin has actually decreased.
This situation raises various questions among investors, especially regarding what is actually happening in the crypto market today.
Larry Fink and the Potential of Asset Tokenization
At the Davos summit, Larry Fink discussed the future of digital assets, including the idea of tokenizing stocks, bonds and commodities. According to Fink, this would instantly democratize the market.
“Bitcoin could reach $700,000 by bringing all assets onto the blockchain,” said Larry Fink.
He also highlighted the importance of moving the US financial center from New York to a more strategic location.
Fink, who is known as one of the most influential figures in the financial world, is now a big supporter of Bitcoin. However, while this optimistic view attracts attention, the reality of the market shows volatile price movements.
Capital Drop in Crypto Market
Recent data shows that capital flows in the crypto market have dropped by 60 percent since December 10, from US$334 billion to just US$43 billion. This decline has raised concerns among investors. However, some experts believe that these fluctuations are part of the natural cycle of the market.
“Capital outflows are not the end of the world. We’ve seen this before and the market has come back up,” crypto analyst and influencer Lark Davis said in his latest video.
Regulation and Bank Access to Crypto
In addition to the capital flow factor, regulation is also a hot topic. Major banks in the US, such as Bank of America and Chase, are said to be about to have permission to provide Bitcoin-based lending services. This step is expected to open up great opportunities for mass adoption.
“When banks are allowed to hold Bitcoin and make crypto-based loans, we will see a revolution in the financial sector,” added Lark Davis.
Solana and Ethereum Amidst Blockchain Competition
In addition to Bitcoin, other blockchains like Solana and Ethereum are also in the spotlight. Recent data shared by Blockworks Chief Researcher Ryan Connor shows that apps on Solana generate a percentage of total crypto app revenue that far exceeds Ethereum.
“Solana apps earned 73.3 percent of all crypto app revenue yesterday, a record high for the network,” Connor said in a tweet.
However, Ethereum still faces technical challenges, including a price trend that has not fully recovered. Some investors have even started considering moving their investments from Ethereum to other blockchains such as Solana. [Tr]