The Bitcoin frenzy might soon return to Wall Street according to J.P. Morgan analyst who reported that leading firms were not that enthusiastic and confident on cryptocurrency trading.
In December last year, Nikolaos Panigirtzoglou made a bearish remark that major financial institutions were losing interest in Bitcoin trading and that it was fading. However, on 5 February 2019, while speaking on CNBC’s “Futures Now” he claimed that the situation might have been temporary and there might be renewed interest by major firms and financial institutions in cryptocurrency trading.
Stability in the sector might renew interest
Panigirtzoglou indicated that the Bitcoin fever might make a comeback to Wall Street financial institutions if the right stability in cryptocurrency trading is found. He said that the kind of stability being witnessed in the cryptocurrency market is already setting the mood for more involvement and participation of institutional investors. He added that the cryptocurrency market is relatively new and it has undergone the bubble and burst phases.
Firms are likely to begin re-entering the Cryptocurrency space because of the growth of the underlying blockchain technology that records cryptocurrency transactions.
Industry regulations might derail the comeback
Although he holds the view that firms might re-enter the cryptocurrency market it does not necessarily mean that it will get realized soon. Because of the slow industry regulations, Panigirtzoglou believes that cryptocurrency fever could take longer.
He said that the big obstacle currently to cryptocurrency is regulators because regulatory oversight has been dragging.
At the end of 2017, Bitcoin surged to $19,783.21 but soon after they were caught in a bearish market and its price has declined to almost $3,100 which is a slump of over 80% from its all-time high. Recently the Bitcoin price has been consolidating in the range between $3,000 and $4,000.
However, it is remarkable to note that Fidelity and Bakkt are yet to move into the market as the first Bitcoin ETF waits to happen.