 ▲ Federal Reserve (Fed), U.S. Treasury, Bitcoin (BTC) / ChatGPT-generated image |
As policy coordination between the U.S. Federal Reserve (Fed) and the Treasury gains momentum, the digital asset market has reached a critical threshold for entering a historic bull cycle ahead of a large-scale inflow of institutional capital.
Cryptocurrency analyst Dan Gambardello said in a video uploaded to his YouTube channel on February 9 (local time) that Bitcoin (BTC) and the altcoin market are currently building a base in oversold territory within a downtrend. He projected that close policy alignment led by Fed chair nominee Kevin Warsh and Treasury Secretary Scott Bessent would spur economic growth and create a favorable environment for risk assets. Gambardello emphasized that cooperation between the Treasury and the Fed that drives real yields lower would serve as a direct catalyst for asset market expansion.
The passage of the U.S. crypto market structure bill known as the Clarity Act, which would provide the legal foundation for accelerating institutional adoption, was also cited as a key variable. Gambardello analyzed that if the bill passes around March, regulatory clarity could unlock the inflow of more than $3 trillion in sidelined institutional capital, triggering a fundamental transformation of the digital asset industry. Citing comments from SkyBridge Capital founder Anthony Scaramucci and BlackRock Chairman Larry Fink, he added that as banks fully enter the space, a major wealth transfer will begin, erasing the boundary between traditional finance and crypto.
Among major altcoins, Cardano (ADA) stood out for its historically undervalued condition. Cardano’s monthly relative strength index has fallen to levels seen at prior bear market bottoms, offering a strong buying opportunity ahead of a new business cycle expansion. Its increased weighting to 19.55% in the Grayscale Smart Contract Fund demonstrates sustained institutional interest. Gambardello explained that Cardano is currently in an extreme accumulation zone with a very high probability of being higher in price one year from now based on the data.
Sui (SUI) was also recognized for its high potential as a first-cycle asset that has not yet experienced a full-fledged bull market. Gambardello noted the possibility of Sui reaching price targets between $13 and $25 amid growing institutional interest, urging a data-driven, emotion-free strategic approach. He also highlighted the rapid pace at which digital assets are encroaching on financial services, echoing the optimism expressed by Coinbase CEO Brian Armstrong.
Gambardello concluded that the current downturn represents a precursor to a delayed rebound that will end soon, as macroeconomic data and the regulatory environment are falling perfectly into place. He stressed the importance of focusing on long-term macro trends and building data-based exit strategies rather than being swayed by anonymous pessimistic commentary. As the gates open for large-scale institutional capital, proactive responses that leverage market volatility as an opportunity are expected to determine returns.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on this content. The information should be interpreted solely for informational purposes.*