From Nasdaq, Inc.:

Cryptocurrencies are being called “grotesquely overvalued” by a prominent Ethereum advocate named Polynya. According to Polynya, the market is “utterly-detached-from-reality” and is functioning like an unhinged casino. He notes that most of the industry’s product market-fit is “alternative or speculative store-of-value.”

The industry’s most prominent advocates, including BlackRock’s CEO Larry Fink and $1.5 Trillion fund Franklin Templeton, are buying into the idea of cryptocurrencies going mainstream. However, a Deutsche Bank report found that many expect the price of Bitcoin to fall below $20,000 in 2024, contrary to the industry’s upbeat expectations. Retail investors are also not yet buying into the hype.

Former President Trump has publicly railed against Central Bank Digital Currencies (CBDCs), stating his intention to protect Americans from government-issued cryptocurrencies. Despite this, Americans are more interested in rags-to-riches stories and insider trading than whether cryptocurrencies can improve the financial system.

Bitcoin is bouncing back on easing sell pressure, with the “unhinged casino market” likely to stick around for few memecoins longer. Despite this, cryptocurrencies are still not mainstream for retail investors, and the industry faces ongoing uncertainty and skepticism about its outlook.



Read more: ‘Crypto Assets Are Grotesquely Overvalued:’ This Ethereum Fan Calls The Market An ‘Unhinged Casino’