Kraken: “the crypto rally is the revelation of a repressed and previously clouded demand”

Thomas Perfumo, Head of Strategy at the crypto-exchange Kraken, shared his thoughts on the current bull run in the cryptocurrency sector. With Bitcoin surpassing the $100,000 mark today, Perfumo states that the current crypto rally “reveals the previously obscured pent-up demand.” 

Kraken and Thomas Perfumo: the crypto rally as a revelation of pent-up demand

Thomas Perfumo, Head of Strategy at the crypto-exchange Kraken, states that the current crypto rally is not such a surprising situation. 

In fact, the fact that the bull run of cryptocurrencies is occurring right after the announced victory of Donald Trump in the US presidential elections should have a meaning.

Here are his words on the matter:

“The recovery of the cryptocurrency market after the elections in the United States reveals the pent-up demand previously obscured by uncertainty and the lack of a clear vision for cryptocurrencies in America. Along with an optimistic macroeconomic outlook until 2025 for financial assets, the world of cryptocurrencies finds itself in a very favorable position. That said, the speed of this market recovery should not surprise too much.”

In practice, Perfumo emphasizes that the current explosive demand for crypto is just something repressed and previously obscured by the confusing regulation in the USA.

Not by chance, during the election campaign, Trump expressed support for the crypto sector and, with his victory, the chain of events began. 

Among the various, the President of the Securities and Exchange Commission (SEC) of the USA, Gary Gensler, always opposed to the development of the sector, has submitted his resignation, leaving room for others who will follow the thread of Trump’s ideologies.

Kraken and Thomas Perfumo: the current crypto rally is not a surprise

Another aspect of the current crypto rally highlighted by Perfumo of Kraken concerns the supply and demand of the assets. 

In fact, according to Perfumo, if such an explosion in demand had occurred in traditional markets like those of oil or precious metals, companies would have increased production to meet it. 

In the case of Bitcoin, the situation is not like that, as there are no companies that can decide to increase its production. On the contrary, the supply of bitcoin will always be lower. 

“Over 94% of all bitcoins have already been mined. The available supply is growing at an annual rate of about 0.8%, with a trend of further decrease from now on. The supply of Bitcoin is known today, tomorrow, and in the future. There is only one logical conclusion when demand is so high: the price trend becomes bull.”

Finally, the Strategy Manager of the crypto-exchange launches his prediction on the mainstream adoption of BTC and crypto in the long term.

In this regard, Perfumo is optimistic in stating the following: 

“At a global level, we believe that the adoption of crypto is around 10% of the world population, while about two-thirds of the world population has access to the Internet. We may soon see tipping points in adoption – as often happens with technological disruptions when they move from early adopters to the mainstream – bringing over 1 billion people towards cryptocurrencies in the next two or three years.”

The new President of the SEC and the ATH of Bitcoin above $100,000

Just yesterday, Trump announced on his social network Truth, that he appointed the new SEC Chairman in Paul Atkins.

In addition to recognizing his various qualities, Trump explicitly wanted to specify that Atkins recognizes that digital assets and other innovations are essential to make America greater than ever. 

With digital assets, of course, we mean cryptocurrencies, NFTs, and various tokenized assets.

The response of the crypto market to this news was evident with the price of Bitcoin (BTC) surpassing the threshold of $100,000. At the time of writing, BTC is worth $102,645, but it has marked a new all-time high or ATH at a price of over $103,000.