This is the year that institutional money will come into the cryptocurrency market, thanks to the development of trading infrastructure, Tabb Group said on Tuesday.
The capital markets research and consulting firm’s senior analyst Monica Summerville and colleagues said in a report:
“If 2017 was the year cryptocurrencies went mainstream, then 2018 is certainly shaping up to be the year they go institutional.”
The market capitalization of all cryptocurrencies has halved from $800 billion in January to around $400 billion this month, according to CoinMarketCap.
Three main hurdles are regulatory uncertainty, lack of market infrastructure, and institutional-grade data sources — prevent institutions from participating in the cryptocurrency market at scale, the report said.
That has forced much of the institutional trading volume into over-the-counter trades, which ranges from $150 billion to $30 billion in daily trading volume, the analysts said, noting comparisons to the early ages of the now $5 trillion spot on the foreign exchange market.
The analysts said:
“But the newest technology providers entering this space are led by people from the wholesale financial markets who claim they have spotted a significant market gap waiting to be filled. The word on the street is that significant additional institutional money is being amassed and is waiting for the right conditions to enter the market — and expected to start doing so this year.”
With time Bitcoin has been adopted by many industries and governments. Even though a couple of years ago governments and industries were skeptical about the technology and believed it to be useless. Now it has great use and is promoting research on blockchain and cryptocurrency.
The Chinese government recently extended its research on blockchain technology and multiple online and offline stores that are now readily accepting Bitcoin and other altcoins as a mode of payment. The future looks bright for the cryptocurrency and the days of it being institutionalized don’t seem far away.
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Is Binance 2.0 and margin trading really accessible for ‘everyone?’
Binance, one of the world’s largest exchanges, announced recently that Binance’s upgraded version, Binance 2.0, was available to everyone. CZ tweeted,
“While #bitcoin is on a tear on price, @Binance have rolled out Binance 2.0, with margin access to everyone. In bear and bull markets, we #BUIDL!”
The margin trading feature which was previously available for limited users has now been made available for everyone. Although CZ’s tweet says it is available to everyone, there is still a catch to this. It is not available for users in countries where crypto-jurisdictions are unclear. These include the U.S, Iran, North Korea, Syria, Cuba, Crimea, Canada, Japan, and South Korea.
CZ followed up the above tweet with another, talking about performance, a “key improvement” that comes with Binance 2.0. Previously, when trading volume rose, users would suffer from lags and other performance issues. However, the upgrade will solve each of these issues, said CZ.
“One of the key improvements in this upgrade that not easily visible is performance. During peak times, if you experience lag or other performance issues, be sure to try out 2.0. We will soon decommission the “1.0” version due to legacy performance bottlenecks.”
However, even after CZ’s announcement, margin trading is still not accessible to a few users. These users were greeted with a notification which said, “This feature is only available for invited users.” A lot of users have complained about the same, with CZ yet to put out a statement about the same.
Additionally, Binance has announced the start of BEP2, which is a community listing program where Binance lists one project every month for three months. This will extend from the 20th of a month and extend to the 20th of the next month. Any of the following coins, as seen in the tweet below, might be listed on Binance over the coming days.
A reminder that you may see one or more of the below tickers on Binance .com soon.
— Binance (@binance) June 26, 2019
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