Key Drivers of the Crypto Market: Insights from Trevor Filter
Trevor Filter, the co-founder of Flexa, a digital payment platform, offers a broader perspective on the recent revival of the cryptocurrency market, suggesting that factors beyond the January launch of spot Bitcoin ETFs are at play.
Filter highlights the Federal Reserve's recent decision to keep interest rates unchanged as a significant influence on Bitcoin. Typically, avoiding a rate hike encourages more borrowing, thereby attracting investments into riskier assets like BTC.
Another important event to consider is the upcoming Bitcoin halving. Halvings have historically triggered price rallies as the market adjusts to reduced miner rewards. Although the halving is scheduled for April, its effect is already being felt, applying pressure on the market. The activity of many miners, especially those using older equipment, risks becoming unprofitable under new conditions, leading to increased coin sales and a trend toward the consolidation of smaller players.
Filter also points to significant developments and innovations in the sector. For example, BTC transaction fees saw a fourfold increase over just five days at the end of January, driven by activities in the BRC-20 and Bitcoin Inscription segments. Additionally, the Lightning payment network is experiencing growth.
We've seen more than 2x capacity on the lightning network over the last year,Filter notes.
Bitcoin, acting as the market leader, continues to influence overall market sentiments. Filter believes Bitcoin will remain a key determinant of market trends.
He also sheds light on Flexa's real-world experiences. Since late 2023, the platform has experienced a 3 to 4-fold increase in payment volumes, validating the growing interest in cryptocurrency payment solutions.
“I really believe that crypto is a technology that can enable better flows of funds. So if we're thinking about money transfer overseas or we're thinking about being able to earn points in an app and then spend them in stores that's where crypto I think has a real opportunity to shine,” businessman elaborates.
Trevor Filter emphasizes that we are witnessing a paradigm shift: cryptocurrencies are evolving from mere trading instruments to robust and functional transactional tools. This seismic shift is of great significance:
We are seeing a shift in the user away from this speculative investor being 95% of volume toward people who are starting to use these [crypto] for other types of more leisurely activities or just a part of their everyday lives,Filter summarizes.