‘US institutions discussing Bitcoin; volatility temporary’
Bitcoin is undergoing yet another volatile phase amid FUD and anticipation of the Chinese New Year’s influence on markets. The asset’s price even slipped as low as under $30,000 from its earlier range of $34,000 and more. Recently, Eric Peters, CEO of Connecticut-based OneRiver Asset Management seemed to assure investors and traders that the volatility is temporary.
The chief executive believed that over time, prices of the leading crypto will increase, although some amount of volatility in the market is more likely to stay. He added:
There are all kinds of reflexive dynamics in these assets that ironically will lead to less volatility the higher they go. As the prices are going higher, you are drawing in new types of investors with stronger hands.
In a recent interview with Bloomberg, the OneRiver founder was of the opinion that big institutions in the US were discussing Bitcoin:
Almost every big, creditable institution in the U.S. is having discussions about this.
Furthermore, Eric Peters believed that such emerging digital assets were a better investment compared to gold:
Digital assets are really interesting in the sense that they are new—it is a new asset class altogether.
According to Peters only “a real pessimist” would think that digital assets will not be more useful and valuable compared to gold. Additionally, he said that gold was at a disadvantage as it cannot be upgraded through software:
It is a technology platform. It [Bitcoin] will look different tomorrow, and next year, and in a decade to come relative to how it looks right now. That makes it unique to gold.
On 4 January, Samson Mow compiled a list of institutional investors that are planning to purchase Bitcoin this year. The list includes One River, among other entities that will apparently buy Bitcoin which could range between $100 and $600 million in BTC.
.@ErikSchatzker talks with One River Asset Management's Eric Peters about his current crypto holdings and #TheYearAhead for digital assets. "It's a new asset class altogether and I think they have some unique qualities – part of which resemble the qualities you find in gold." pic.twitter.com/nvT4tsET7k
— Bloomberg Live (@BloombergLive) January 28, 2021