The head of commodity research at Goldman Sachs Jeff Curie, told CNBC this week that the BTC market was becoming more mature. He also noted that predicting the BTC price was quite difficult because the price was subject to so much volatility and uncertainty. “I think the market is beginning to become more mature. I think in any nascent market you get that volatility and those risks that are associated with it”
With BTC price shedding 7% of its value overnight, most would agree with Goldman Sachs chief who further remarked that institutional investing was the key to creating stability. He added that more institutional money coming in was the key to seeing a more stable BTC market. Curie’s point holds water because heavy institutional involvement will inspire confidence and more traders will want to be involved.
Only 1% institutional money
Currie added that institutional money only accounted for roughly 1% of bitcoin’s market cap. Meanwhile, public companies and investment trusts are holding 1,171,889 BTC according to Bitcointreasuries.org. The amounts being held by trusts and public companies translates to about $46 billion or 6% of the total BTC market cap.
Institutions are going long
Recent reports, show that institutional interest is growing. Several reports such as a survey by Fidelity, found that almost 80% of 800 institutional investors found crypto appealing. The survey results tell us that institutional demand for BTC may accelerate soon.
We have recently seen some heavy weight institutional buyers pour into the BTC markets recently. Some of the big institutional investors include Microstrategy, Skybridge, Ruffer and MassMutual. Some companies have not yet invested into the crypto markets, but it doesn’t mean they aren’t looking into it. Investment behemoth Blackrock is looking to fill a role created for a crypto expert. If more companies with such resources and profile buy into crypto, it will be game changing.
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