Will Bitcoin Market See Institutional Money This Year?

wxm11 (37)in #cryptocurrency • 7 years ago

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According to CNBC, the market research company Tabb claims that 2018 will be the year when institutional money will flow into the Bitcoin market.

"If 2017 was the year cryptocurrencies went mainstream, then 2018 is certainly shaping up to be the year they go institutional," said Monica Summerville, a senior analyst of the markets research firm.

According to coinmarketcap, the market cap went from $800 billion in January to around $400 this May.

Cryptocurrency investors have been waiting patiently for institutional investors to open their wallets for the crypto market. While a lot of people thought that the launch of Bitcoin futures in December would have changed anything, in reality, Bitcoin lost more than a half of its value.

What holds institutional investors from getting into cryptocurrency?

There are three main difficulties that need to be tackled first.

Unclear Regulations
Market infrastructure is lacking
Data sources of institutional level

These primary issues are not attractive to institutional investors, and a majority of them have plunged into over-the-counter trades, with an estimated daily trading volume of $30 - $150 billion. This means nothing when compared to the foreign exchange market which sits at $5 trillion.

The analyst said:

"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."

Sources:
CNBC

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