Crypto analyst Nicholas Merten says that corporate investment into the crypto markets could be the catalyst that carries Bitcoin (BTC), Ethereum (ETH), and the rest of the crypto markets out of their current slump.
In a new YouTube video, the DataDash host tells his 508,000 subscribers that corporate treasurers will save the crypto markets sooner than many might expect.
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“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.”
Merten notes that corporate treasurers are pickier than the average investors when choosing their entry points. The analyst says that with crypto markets trading at a big discount from their all-time highs, the big corporate players may be looking to rotate into nascent space.
“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.”
The analyst says it’s highly significant that KPMG Canada recently added Bitcoin and Ethereum to their balance sheet. According to Merten, the Big 4 accounting firm’s move could set the precedent for more corporate giants to make similar decisions.
“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.
That’s great news.”
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