Pay no attention to the price of Bitcoin and Ethereum



The crypto is totally dead lately, if you just look at the price action.

Yes, Bitcoin is down 72% from its peak price in November 2021, almost a year ago. Ethereum is down 72% from its own high of $4,878. Weft.

Crypto advocates point out that it’s not just about crypto, stocks have also been hammered. And they are right: everything is down right now. But that’s cold comfort for crypto believers, who – I’ll let you in on a little crypto media trade secret – don’t care to read crypto news when crypto prices are falling. ConsenSys CEO Joe Lubin showed some courage last week when he told me about the tech success of the Ethereum merger, but ETH is down 21% since the event.

For better temperature control on how crypto is doing, look at the major recent signs of mainstream adoption. Over the past two months, we have received a series of indications that major financial institutions and tech companies believe crypto is here to stay. You would be excused for missing this news as the global economy collapsed all around us.

In August, BlackRock, the world’s largest asset manager, launched a private Bitcoin spot trust to give its clients exposure to the current price of Bitcoin. (As a reminder, the SEC flatly refused to greenlight a publicly traded Bitcoin ETF, only allowing Bitcoin futures ETFs; but BlackRock can offer its own clients whatever service it wants.) BlackRock has also said he sees “substantial interest” in crypto from his institutional clients, and is exploring stablecoins and tokenization. Wow. Bitcoin didn’t budge on this news, a sign of just how much the economy weighs on every type of asset.

The past week brought two other great demonstrations of faith.

Google has announced that it will start accepting crypto as payment for its cloud services early next year by connecting to Coinbase. As part of the deal, Coinbase Commerce will move its “data-related applications” from Amazon Web Services to Google. So not only does this Google Cloud accommodate crypto, but also a form of rapprochement between Google and Coinbase.

On the same day, 239-year-old Bank of New York Mellon launched its own Bitcoin and Ethereum custody service. The bank will hold the customers’ private keys and provide accounting for their crypto wallets. This follows BNY Mellon becoming the custodian of the cash reserves that back Circle’s USDC stablecoin in March. And last year, BNY Mellon launched a bitcoin custody service in Ireland.

All of this might sound to mocking crypto-skeptics as a sad attempt at rationalization. Web3 builders’ favorite mantra, “bear markets are for building”, is repeated so often at times like these that it’s become cliché. That doesn’t mean it’s wrong.

I first wrote about Bitcoin in 2011. I witnessed the frozen crypto cycles of 2014, 2018 and now. Some of the most well-known crypto companies and platforms were created during these “winters”.

Lubin says crypto is “tail wagging a very sick dog” right now and won’t improve until the economy improves. Solana founder Anatoly Yakovenko thinks it could take 12 to 18 months.

Meanwhile, they’re all still under construction, as signs of future adoption quietly grow.

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