Reports are increasingly indicating that bitcoin’s recent drop of 70% from its December record highs of nearly $20,000 has spurred a renewed interest in the BTC and cryptocurrency markets from institutional investors.
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Reports Indicate Influx of Institutional Investment
Jeffrey Van de Leemput, an analyst working for Cryptocampus, has attested to the influx of interest from institutional buyers, stating that “serious money is now entering the market for the first time”. Mr. Van de Leemput added that “a couple days ago I helped set up a 200k BTC transaction for Chinese buyers… Soros, etc., are coming in, we will now see the start of the real bubble.”
Olga Feldmeier, the chief executive officer at Smart Valor, predicted that a strong break above the $8,000 USD area is having the potential to comprise “the ignition for the next bull phase, for which a lot of investors were waiting for a long time and will be happy to support now.”
Rich Ross of investment firm Evercore recently reluctantly described bitcoin as an attractive investment, following the early-2018 crash, stating: “As much as it pains me to say this, the chart does look a lot like other highflying stocks that I am buying on this dip.”
The chief investment officer of cryptocurrency hedge fund BlockTower Capital, Ari Paul, recently described widespread institutional investment as an inevitability for cryptocurrencies, saying: “I do think it’s inevitable from a few angles. Even if they never believe in it, as an asset class, they’re smart enough to recognize the alpha opportunity.”
Bitcoin Seen as Attractive Hedge Against Mainstream Markets
Cryptocurrency analyst at Saxo Bank Jacob Pouncey acknowledged that the recent advertising bans and the
