Connect with us

Bitcoin

Bitcoin is missing institutional interest, claims research

Avatar

Published

on

Source: Pixabay

The year 2019 posed as a perfect example of the volatile nature of cryptocurrencies as the price of Bitcoin spiked during the beginning of 2019, however it witnessed a massive drop following the recent crash in the crypto market. The surge in the king coin’s price in early 2019 if often correlated to the entry of various institutional investors into the ecosystem. However, the institutional interest towards the digital gold seems to be depreciating, reports suggest.

Physically settled Bitcoin futures products were still encountering low volumes following the launch of Bakkt as it marked its first block trade settle recently.‘The Tie’, cryptocurrency trading researchers revealed a significant drop in headlines for the terms “institutions” and “bitcoin”.

Bitcoin is often compared to gold due to several similarities including its limited supply. The mention of the word ‘gold’ in Bitcoin headlines also seemed to have hit a two-year low, the analyst revealed.

Additionally, various other signs of institutional interest descending from the cryptocurrency scope consist of the price of the Grayscale Bitcoin Trust’s GBTC tumbling to a 7-month low.

Previously, CoinList’s Andy Bromberg detailed the recent Bakkt launch as he asserted that it would stand as a pointer of how institutions are comfortable entering the crypto space.
Furthermore, Skew , a data analytics company revealed that the latest Binance Futures products traded over $170 million on the day of its launch and ever since they remain to trade almost $2 billion in weekly derivatives. This further suggests that despite the fall in the interest of institutional investors, speculators believe that the big investors have already entered the industry.

Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Bitcoin

Bitcoin can reach $25K if usage crosses 1M people: Thomas Lee

Manu Naik

Published

on

Source: Unsplash

Managing Partner and Head of Research at Fundstrat Global Advisors, Tom Lee, recently made an appearance on CNBC‘s ‘Street Signs Asia‘ segment to talk about Bitcoin price movements in the future. Lee also spoke about why he thinks Bitcoin will touch $25K by 2022.

According to Lee, for an industry that’s over a decade old, these are still early days for digital assets. However, as time passes, it will become very institutional, he said. Fundstrat’s Lee added,

“Over time, it’s going to become an asset class, and once we hit that it’s actually another hockey stick.”

When asked about his prediction for the king coin’s price, Lee said that it had been established back in 2017 as a five-year prediction. According to him, the predicted goal would be easy to achieve due to cryptocurrencies being network value assets — the more people that hold it, the greater its value.

“In fact, it’s a log function, so if you double the users you get a quadrupling of value, and to go to $25,000 you essentially need a 4x rise (a little bit less than that) which means you need to double the number of people who hold Bitcoin.”

According to Lee’s estimates, there are under half a million people in the world who own and use Bitcoin widely today. He also compared Bitcoin to Internet stocks such as FAANG and attributed 70% of their returns since the IPOs to the growth of the Internet over that period of time.

“So in other words, it was a log function of the Internet growth, and that’s how cryptocurrencies are going to work. That’s just saying if you take it to a million users, you could get to $25,000.”

Continue Reading

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.