The recent rally of Bitcoin prices around the $3,400 mark
The recent rally of Bitcoin prices around the $3,400 mark has changed the perception of institutional investors on wall street towards the Bitcoin trade market. JP Morgan, one of the leaders in institutional investment on Wall Street, has always maintained a tough stance on Bitcoin and its price volatility.
However, recently one of the analysts from the firm appeared on CNBC to discuss how the current bearish trend might prompt many wall street institutional investors to foray into the Bitcoin trade game.
JP Morgan is an unpopular name in the crypto circle, and not so long ago, the headquarters in New-York released a research paper which talks about the scepticism of the firm towards the prices of Bitcoin. The research paper explains that the Bitcoin price volatility was showing signs of being a bubble. The same research paper predicted the prices of Bitcoin to find support at $2,400 mark and might slide down to $1,260 if the bearish trends persist for a longer period of time.
The Current Bitcoin Price Stabilization can Lure Wall Street Investors
The JP Morgan analyst, Nikolaos Panigirtzoglou, who appeared on the talk show hosted by CNBC noted that the current stabilization in Bitcoin price at around the $3,400 mark shows that the crypto ecosystem is finally getting out of the boom and bust cycle. This might prove beneficial for a wider acceptance as the price volatility had kept the institutional investors of wall street away from the crypto market.
Nikolaos Panigirtzoglou, although hopeful of the inflow of institutional investors is right around the corner, however, he believes that the main key to the boom of crypto is held by the regulators and policymakers, who might not be slow to realize it.
Regulators and Institutional Investors Need to Come Together
Edward Tilley of CBOE agrees with the sentiment that institutional investment interest for crypto is quite thin but with the right set of regulations and more mature crypto trade market can change the sentiment sooner. He explained further,
The power of having that future there is also having an ETF that is more attractive to retail, and then institutions can lay that risk off on the listed futures market… Absent that leg and introducing trackers or notes, I think we will be in this, It trades every day, but it is not the story.
Tilly believes both regulators and investors are currently in a dilemma on whether to move forward and accept the crypto market or wait a little more to be more assured.
However, Nikolaos Panigirtzoglou begs to differ a little as he is optimistic of a new change of trends and points out towards major developments underway like Bakkt, Fidelity’s Digital Asset Services, Nasdaq’s up-and-coming “crypto 2.0” futures, along with the potential for a U.S.-regulated exchange-traded fund (ETF). The Analysts believes that these impending updates would only add confidence of the outsiders towards the crypto ecosystem.