“Really Close to the Tipping Point” Kraken Strategy Head Says About Bitcoin

After reaching new record highs at the start of the previous week, the weekend saw the Bitcoin price falling below $70,000. Thomas Perfumo from Kraken, during an interview with Jordan Smith on CNBC’s Crypto World, offered his insights into Bitcoin’s situation and its broader implications for the cryptocurrency market.

Perfumo made it clear that fluctuations in Bitcoin’s value are part of the market’s nature, especially after periods of strong growth. He pointed out Bitcoin’s relatively small market capitalization in the context of the global economy, despite nearing a $1 trillion valuation. Compared to the traditional fiat currency market, Bitcoin still plays a minor role.

“In terms of market capitalization, Bitcoin still has a long way to go when compared to the traditional fiat currency market,” Perfumo said in the interview, emphasizing Bitcoin’s potential for growth.

Discussing cryptocurrency adoption, Perfumo shared optimism about reaching a wider audience. He referenced a study indicating that only 10% of the global population had adopted cryptocurrencies by last year. Historical trends suggest that adoption accelerates significantly once it exceeds the 13-15% mark, a phase known as “crossing the chasm.”

“We are really, really close to the tipping point, and that’s what I am looking forward to over the next five years for BTC,” Perfumo stated, expressing his anticipation for a leap in Bitcoin adoption.

Regarding the 2024 halving, Perfumo views it as a crucial event for Bitcoin, considering its current stage of adoption. “When I think about this halving specifically, I think it is perhaps the most symbolic in Bitcoin’s history, especially in this stage of adoption,” he remarked.

At the time of writing, Bitcoin is trading at $67,975 according to CoinMarketCap data, up 4% over the past 24 hours.