The CEO of Blockchain Inc., Peter Smith, recently stated in an interview that the cryptocurrency market will see consolidation in the next few months. He quoted his reasons for saying so as the increased entry of institutional investors into the market.
This comes after Bitcoin saw a rally above the $7000 mark after a period of extended non-volatile behavior. The coin broke the $7000 mark and continued to present a constant price above the limit.
“For the last couple of years, we have seen really rapid increases then very rapid decrease and then sort of a slow consolidation of the market. I think we are seeing another slow consolidation in the market now, there is a likelihood to see a moderate and positive consolidation over the next quarter.”
According to Smith, this cycle of the market has a good position due to the presence of regulatory clarity. This did not exist last year, he said. He also spoke about the penetration of institutional investors into the market, saying that the order flow has changed. He stated:
“Right now it’s a pretty slow retail market, historically market is led by retail. The market is seeing a pretty big uptick in the institutional market. That’s the reason Bitcoin is outperforming.”
Bitcoin still seems to be the go-to choice for institutional investors entering the market, as it is the one with the most direct regulatory approach. On this, Smith stated:
“Institutions that are coming into the market are usually buying Bitcoin first so I expect it to outperform relative to other major cryptos in the next 6 months.”
More recently, technology solutions for Bitcoin’s custody by institutional investments have emerged, such as Coinbase’s Custody solution. This is also in line with Michael Novogratz’s prediction for the state of the market, as he believes that custody solutions will drive the market. In May, he stated that Bitcoin reaching high depended on the custody solutions for digital assets, namely wallet services and private key storage solutions.
Smith said something similar, stating:
“But a lot of this has to do with the infrastructure that you build to enable some of these institutions to come into the market. There are a lot of talks of these institutions coming into the market, but I think we won’t be seeing its full effect until mid-2019.”
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Bitcoin’s [BTC] current performance shows that it is a great diversifying asset, says Morgan Creek’s CIO
The phenomenal rise in Bitcoin’s [BTC] price has excited the cryptocurrency market, with many speculating that the end of the prolonged bear market is near. Many proponents in the cryptocurrency space have also voiced their opinion about how positive fluctuations in the world of digital assets have actually enabled them to outperform the best of the S&P market.
In a recent interview on CNBC’s Fast Money, Mark Yusko, Chief Investment Officer at Morgan Creek Digital Capital, spoke about the rippling effects of the cryptocurrency market and the implications of Bitcoin’s current run. Brian Kelly, CNBC’s famous Bitcoin bull, further added that he hoped people would put their money on Bitcoin. To this, Yusko replied,
“Morgan Creek had launched the cryptocurrency challenge back in December and there were not many takers. In a way that was good because BTC is up by more than a 100 percent right now, which is a much better hit rate than that of the S&P market. We will see that in the next 10 years, Bitcoin will outstrip even its current performance and maybe even more.”
Morgan Creek’s CIO further opined that BTC is a great diversifying asset and that it should be in everybody’s cryptocurrency portfolio. He added that at the end of 2018, many analysts thought that 2019 would be the year when BTC would see a lot of bear bounces. However, the world’s largest cryptocurrency managed to beat expectations. Another argument that he laid out for BTC’s longevity was the predicted credit crisis in 2020, a market shift that is expected to cripple mainstream banking systems.
Despite the coin’s present performance, the ‘king coin’ was hit with some negative news recently after the latest Binance research report hinted at ‘disruption with trading pairs,’ as BTC pairs lost 38.9 percent of its market share. The research stated that out of all the trading pairs, USDT saw the largest net inflow, with a total increase slightly below $1 billion.
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