Nicholas Merten: Could Corporate Investors Lift Crypto Back Up?
According to Nicholas Merten, a top crypto market analyst, corporate investment might just be the driver that Bitcoin (BTC), Ethereum (ETH), and the rest of the crypto markets needs in order to regain the momentum.
In a recent video update, shared with the 508K subscribers to DataDash YouTube channel that corporate treasurers might carry the crypto market out of the current correction.
“Corporate treasurers… could be the catalyst that actually carries us out of this recent correction that we’ve had in December and January. I do believe we are going to see it faster than we may expect.”
The analyst points out that corporate treasurers are much more experienced than the average investors when choosing their entry levels. Now that the crypto markets trading at lower levels, large corporate players could well be making their entries.
“Corporate treasurers are not going to buy at new all-time highs. They buy when assets are at discounts. They rotate assets in their balance sheet, whether it’s up, you know, just basically cash, buying it on a discount, or maybe, for example, their equity plays have been doing really well, and now, they’re going to lock in some of those gains and rotate to fixed income assets like bonds or treasuries. Or into a new asset class, like cryptocurrencies.
That’s how a corporate treasurer thinks. They do not buy at peaks in price, they buy at discounts when no one else is willing to buy because they know that it’s just like shopping – it’s going out and finding things that you like at a discount.”
Merten highlights that KPMG Canada recently added Bitcoin and Ethereum into their balance sheet, could set the precedent for other corporate giants to follow the footsteps.
“That is a major move for crypto assets… To have a traditional company like KPMG now starting to showcase that they believe that Bitcoin and Ethereum are tokens worth putting on their balance sheet. And on top of that, they did a great example of showcasing how if companies were to be concerned about the carbon emissions tied to Bitcoin or Ethereum through proof-of-work mining, that you can buy carbon offsets… they showcased how a large institutional company can do this in a way that meets their goals and services as a probable asset for corporate treasures.
