Home Bitcoin News Bitcoin Wall Street’s Interest In Cryptocurrency Could Attract Institutional Investors

Wall Street’s Interest In Cryptocurrency Could Attract Institutional Investors

  • The Bitcoin prices have rallied to create new records to hit the year high of $11,000 on August 2, further strengthening to above the $11,200 mark on August 3.
  • Chainanalysis suggests that this could entice institutional investors from Wall Street to make bigger and bolder moves when it comes to transfer of Bitcoins and Cryptocurrencies.

When the “Crypto Winter” hit in 2018, many sceptics believed that it was the end of the road for Cryptocurrencies. The scams that came in 2018, saw many investors lose out on a great deal of money and its reputation too took a nosedive. In fact, E&Y released a market study in 2018, wherein it was observed that cyber theft resulted in loss of $1.5 million per month.

Market capitalization of the same too fell drastically. According to FXCM, the total market capitalization of digital currencies fell to nearly $100 billion in December 2018. Bitcoin prices nosedived from more than US$20,000 in December 2017 to less than US$3,200 in December 2018.

Now cut to 2020, the Bitcoin prices have rallied to create new records to hit the year high of $11,000 on August 2, further strengthening to above the $11,200 mark on August 3. This has made the Wall Street to sit up and take a look at Bitcoin and cryptocurrencies more seriously. Stats from CoinMarketCap shows that the percentage of total market capitalization of the Bitcoin is close to 67.98% at the start of January and still holding fort despite blip to 61% as on August 3.

WhatsApp Image 2020-08-07 at 14.15.50 (1)

 

 

Institutional Investors and Fintech

Chainalysis suggests that this could entice institutional investors from Wall Street to make bigger and bolder moves when it comes to the transfer of Bitcoins and Cryptocurrencies. The Chainanalysis team in its blog post observes that as of June, North America is the epicenter of this change with 90% of the cryptocurrency transfer volume coming from professional-sized transfers. Now one of the reasons for this could be that there is an increasing number of the growing class of institutional investors whose transfers account for the increasing dominance of professionals in the North American market since December 2019.

As per Coin Dance, the weekly Bitcoins volumes indicate that there has been volume worth $5.08billion as on August 1, 2020.

WhatsApp Image 2020-08-07 at 14.15.50

However, many believe that the crypto market is still fragmented despite its overwhelming support. In fact, as per a survey done by Fidelity Digital Assets, the cryptocurrency arm of Fidelity Investments, of about 800 institutional investors 74% of U.S. institutional investors find cryptocurrency appealing rest 26% still have lingering doubts. But with Wall Street showing keen interest, that number could swell. Kim Grauer, Chainalysis’ Senior Economist points out perfectly, that Wall Street’s involvement in the Bitcoin and Cryptocurrency market mature in terms of greater transparency and price stability.

Grauer expects the role of regulators and the exchanges could grow much more deeper and with better liquidity and price discovery mechanisms, the institutional players could be attracted towards it once the sense of transparency sets in.

Download our App for getting faster updates at your fingertips.

en badge web generic.b07819ff

Manu Shankar
Manu Shankar is the Editor of The Coin Republic, who oversees the content that is produced on the website. A former journalist himself, Manu has more than 15 years of experience in Journalism working with leading national dailies such as Hindustan Times, Indian Express, Mail Today and Online media such as NDTV, Rediff. As the Editor, Manu brings together his passion for blockchain technology, cryptocurrencies and fintech.

We Recommend

Top Rated Trading Platforms

Top Rated Cryptocurrency Exchange

Partners

Must Read

XRPL labs soon to release the productive version of XUMM

The last beta version of the XUMM application has been releasedDevelopers have fixed all the bugs in the XUMM applicationXUMM can build...

EagleFX Review

EagleFX is an online forex and cryptocurrency broker. It is headquartered at the Commonwealth of Dominica and was formed in 2019 with...

Ethereum Enters Critical Resistance Zone With Bullish Move Needs to Show Sustainability

Ethereum is finally into resting the critical resistance zone lying around $480.00 to $490.00 with a weekly gain of 4.00%However, the ETH/BTC...

Is Bitcoin Heading for New All-time High in 2020?

Bitcoin price trading above the price levels of January 2018, after breaking multiple resistance over a yearly chartBitcoin Dominance is currently at...

Will Curve DAO Token Be Able to Have a Bullish Run By Forming Parabolic Curve on Chart?

Curve DAO Token has faced significant price corrections activity from the past couple of months resulting in the price levels to reach...

Is OMG Network Signalling For Consolidation After Retracing and Moving Within Symmetric Triangle

After testing the major resistance level of $3.80, OMG Network faced strong retracement and looking to touch the support level of $3.20...

Related News

Billionaire Boss of World’s Largest Hedge Fund Warns Bitcoin Will Be ‘Banned’

The bitcoin cost has taken off as its standing as a possible fence against swelling has developed.  Bitcoin has somewhat broken out of...

Is Bitcoin Heading for New All-time High in 2020?

Bitcoin price trading above the price levels of January 2018, after breaking multiple resistance over a yearly chartBitcoin Dominance is currently at...

Brazilian Indigenous Tribes Neglected by the Government

Jair Bolsonaro, The President of Brazil, is known for looking down on its indigenous people. He is racist and discriminative towards themHe...

Bitcoin’s Options Market Showing Bullish Sentiments

According to Skew's data it is overtaking the net demand for put options known as bearish betsIf we observe the negative one-month...

ZebPay to Dispatch India’s non-fungible Crypto Token and Commercial Center

A non-fungible token (NFT) is a cryptographic symbolic that speaks to something exceptional and has singular qualities that set them apart. The distinction...