Howard Lutnick, Cantor Fitzgerald’s CEO, expresses his admiration for Bitcoin (BTC), attributing its widespread appeal to the halving cycle and decentralized nature.
During an appearance on CNBC’s Money Mover podcast, Lutnick discusses topics such as inflation, the Federal Reserve’s response with interest rate cuts, cryptocurrencies, stablecoins, and the driving forces behind them.
Lutnick starts by stating his affinity for crypto, and then delves into specific digital assets, particularly praising Bitcoin and a select few. He highlights Bitcoin’s unique feature of halving every four years, making the acquisition of the asset progressively more challenging—a significant utility for the community, in his view.
Referring to the asset’s historical patterns, Lutnick observes that each time a halving occurs, the price of BTC experiences an upward surge, gaining bullish momentum to offset previous losses. This trend has been instrumental in rejuvenating the market, especially following the challenging bear market that weighed on traders and miners for an extended period.
During the preceding months, miners found themselves in a precarious situation as the Bitcoin price plummeted to alarming lows, resulting in operational losses. Many resorted to selling off BTC reserves and equipment to sustain their operations. However, in a contrasting turn of events in recent months, the asset’s value has seen a substantial rise. This positive shift has allowed mining firms to reap significant profits and strategically position themselves for the upcoming halving by enhancing operational efficiency.
Decentralization and spot ETF drive adoption
Additionally, the CEO emphasizes the positive impact of Bitcoin’s decentralized nature and the growing interest in a spot ETF among institutional investors on its overall growth. Lutnick characterizes Bitcoin as an alternative that symbolizes a degree of freedom in response to the prevailing economic circumstances.
Highlighting the unparalleled autonomy of Bitcoin, Lutnick remarks, “The only asset people could have held where no one could take it? Bitcoin, it is uncontrollable.” In contrast, he points out the potential vulnerabilities of other assets, noting that with Tether, one can request a freeze, and with Ethereum, there’s the ability to contact individuals like Joe Lublin, introducing a level of control that differs from the decentralized ethos of Bitcoin.
The digital asset market has witnessed substantial inflows, driven by anticipation surrounding the potential approval of a spot Bitcoin ETF by the Securities and Exchange Commission (SEC). This surge in interest is reflected in related products, accumulating over $1.7 billion in the current year, overcoming a sluggish start.
Regarding altcoins, the CEO makes it clear that, in his view, most of them lack significant utility, with the exception of Ethereum (ETH). Lutnick dismissively states, “These other coins, they are not a thing. They’re kind of make-believe, maybe Ethereum is okay.” This underscores his skepticism about the value and legitimacy of most altcoins, reserving acknowledgment only for Ethereum due to its perceived utility.
Big fan of Tether too
Lutnick expresses admiration for the stablecoin issuer Tether, commending its strategic positioning. He declares himself a staunch supporter and reveals that he holds Tether’s treasuries, which currently exceed $90 billion. Lutnick enthusiastically states, “I’m a big fan of this stablecoin called Tether… I hold their treasuries. So I keep their treasures and they have lots of it. They’re over $90 billion now, so I’m a big fan.”
Offering a broader perspective on the market, he doesn’t anticipate significant rate cuts by the Federal Reserve in the coming year. Lutnick suggests that banks and the tech sectors may outperform, while expressing a more cautious outlook for the real estate market, hinting at the possibility of a decline.
