Despite the ongoing conflict and uncertainty between the US and Iran, Bitcoin has experienced a significant recovery.
Bitcoin surged rapidly above $73,000, while the market became divided.
While some analysts argue this rise could be a bull trap, others believe the rally is sustainable.
Owen Lau, an analyst at New York-based Clear Street, told Coindesk that the market downturn may be coming to an end.
According to Lau, Bitcoin surpassing $73,000 could signal the end of the decline.
“The recent surge in Bitcoin may be a result of changes in market structure and improvements in the policy environment.”
At this point, Lau highlighted several positive developments that triggered the rise. He noted that US President Donald Trump’s call for the passage of the Clarity Act increased the chances of the law going into effect before the end of summer.
He also highlighted that Kraken’s receiving FED master account approval was a sign of progress.
Lau added that institutional participation is also expanding, citing Morgan Stanley’s selection of BNY Mellon and Coinbase Custody Trust Company as custodians for its upcoming Morgan Stanley Bitcoin Trust as a recent example.
Lau stated that this is a move that strengthens Coinbase’s role in the institutional crypto ecosystem.
Finally, the analyst suggested that ongoing geopolitical tensions in the Middle East demonstrate the utility of blockchain networks as an alternative payment solution to financial markets. Lau stated that the combination of these developments is significant for the rise of cryptocurrencies and signals larger structural changes in the market.
*This is not investment advice.
