Cryptocampus analyst: serious money is coming to the crypto-market…

Recently, more and more often there are reports that almost 70% of the decrease in the price of Bitcoin at the beginning of this year caused a new surge of interest in cryptocurrency markets by institutional investors. In particular, Jeffrey Van de Leemput, a Cryptocampus analyst, points out that the interest in institutional buyers is increasing, which states that "serious money is coming to the market for the first time."

The head of the company Smart Valor Olga Feldmeier believes that exceeding the limit of $ 8 000 can talk about entering the market in the next phase of growth, "which was waiting for many investors."

Representative of the investment firm Evercore Rich Ross, although reluctant, but also called Bitcoin an attractive investment:

"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."

Director of Investments at the BlockTower Capital hedge fund Ari Paul recently said that large-scale institutional investments for cryptocurrency are inevitable: "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 attractiveness grows

According to Jacob Pouncey, the analyst at Saxo Bank, prohibition of advertising and the possible introduction of regulation of cryptocurrencies pose a threat to the further growth of Bitcoin. Nevertheless, he believes that "we can't rule out the possibility of a comeback. ".

According to Pouncey, the feeling of growing uncertainty in traditional markets can cause an increase in demand for Bitcoins and other similar assets that institutional investors consider incompatible with the main markets.

"If there is a significant pullback in the equity markets, there will be an inflow of money into uncorrelated assets, or assets that lie outside the reach of the traditional financial system in which cryptocurrencies are a potential alternative. The inflow of institutional capital to the cryptocurrency market, due to the increase in regulation and investor protection, could lead cryptocurrencies to a positive quarter. "

CME reports an increase in futures trading volume

The Chicago Mercantile Exchange (CME) reports an increase in the trading volume of contracts for Bitcoin futures by more than 50% since its launch in December 2017. So, in comparison with 1600 contracts in December, in March at the exchange there were already about 2500 contracts (each with a face value of 5 BTC).

According to CME Group Managing Director Tim McCourt, the trading volume on the exchange "is steadily increasing each month. ".

He also states that the introduction of regulation of markets will lead to a greater number of institutional investors in the industry, as it "will improve the efficiency of the market and give investors confidence."

The absence of regulation hinders institutional investors

According to Adrian Lai, the co-founder of the Orchol Partners, the main obstacle to the mass distribution of crypto-currency markets, is the absence of a clear and effective regulation of the virtual currency markets.

"Regulators are not banning the development of cryptocurrencies, but are trying to better regulate the market, which should help the industry mature," Mr. Lai said. "If the regulatory stance gets clearer, large funds will be more assured and willing to commit significant capital."