Bitcoin almost touched $7,600 mark today before sliding to $7,350. According to Blockchain CEO Peter Smith, a positive consolidation is ahead as regulatory clarity and institutional interest increases. He points out Bitcoin is the preferable choice of institutions that will see it outperforming other cryptos but the full effect of these institutions will only come by mid-2019.
Bitcoin to outperform in 6 months due to institutional favor
Bitcoin is currently trading at $7,350, down by 0.97 percent in the last 24 hours, at the time of writing. It came really close to crossing the $7,600 mark by reaching $7,594 before taking a dip and sliding down to $7,270.
Traders and investors alike are trying to decipher if this is the beginning of long returns. Blockchain CEO, Peter Smith in an interview with Bloomberg shared,
“For the last couple of year, 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, likelihood to see a moderate and positive consolidation over the next quarter.”
He further explained that the crypto market is currently at a good place as regulatory clarity has increased which is a huge change to years back. Also, the market is seeing a different type of order flow. According to him, instead of retail, institutional flow is increasing. This is further driving the critical rollout of new products that will see a level of consolidation.
Challenges are there, full-effect will come by mid-2019
Talking about the trading volume and new account activity, Smith commented,
“right now it’s a pretty slow retail market… historically market is led by retail” but the market is seeing pretty big optic in the institutions market. “That’s the reason Bitcoin is outperforming” adds Smith.
“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.”
However, attracting institutional interest means, the market needs to be worked upon as he explains,
“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.”
Blockchain touts itself as an all-in-one company that offers Wallet to send, receives and trade cryptos, Principal Strategies for the institutional portal and Explorer product. Smith also shared what his company his doing in the aspect of adding new institutional services.
The company is currently working on expanding institutional markets in the US says Smith in the interview. “It’s a big focus, bringing new institutional products in the US market.” However, it’s not all easy, specifying the challenge with these institutions he says, “It is a very long cycle.”
According to him, there are a lot of institutional interest and investment discussions in the market but it will take time to realize,
“lot of talks of these institutions coming into the market but I think we won’t be seeing its full effect until mid-2019.”
With the way the crypto market is progressing in terms of regulations, institutional interest, diversification of trading options and a lot more, bitcoin and the overall market is here to stay and good years seems to be ahead.
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Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.