Bitcoin

JPMorgan Strategist Says Bitcoin Interest Could Make a Comeback on Wall Street

JPMorgan Strategist Says Bitcoin Interest Could Make a Comeback on Wall Street

Wall Street’s Bitcoin interest appears to have subsided somewhat in connection with the current bearish market sentiment. However, CNBC recently published an article in which a JPMorgan noted that Bitcoin could make a comeback on the institutional investment scene.

More stable cryptocurrency market conditions could precipitate cryptocurrency resurgence

Specifically, these comments come from JPMorgan’s Global Market Strategist, Nikolaos Panigirtzoglou. Panigirtzoglou suggested that the current phase of relatively meager Wall Street interest for Bitcoin is the result of the current market condition.

Nevertheless, the cryptocurrency market is also – according to Panigirtzoglou – solidifying, meaning that it will soon become stable enough for Wall Street to enter.

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”The stability that we are seeing right now in the cryptocurrency market is setting the stage for more participation by institutional investors in the future. The cryptocurrency market was a new market. It went through a bubble phase [and then] the bust.”

Moreover, Panigirtzoglou also predicted that the growing stability of cryptocurrencies, in conjunction with the continued development of the underlying blockchain technology behind Bitcoin, could attract investors to the cryptocurrency market.

Nevertheless, he ceded that Bitcoin’s resurgence could potentially not happen for several years. This, however, would mainly be due to sluggish regulations – according to Panigirtzoglou – who would fail to realize the technology’s potential.

Wall Street entry could bring substantial injection of institutional capital

This comes as many cryptocurrency industry observers have clamored for Wall Street involvement within the cryptocurrency sector. This would bring a substantial injection of institutional capital, which could potentially offset much – or even all – of the losses incurred during 2018’s bear market.

Although this may sound far-fetched, Cardano’s co-founder Charles Hoskinson famously suggested that a cryptocurrency entry by Wall Street could potentially be worth ”tens of trillions of dollars.”

Nevertheless, several reports have proposed that Wall Street actors are currently dragging their feet on a potential cryptocurrency industry entry. The reason that these firms are mulling such action is reportedly due to the current market sentiment.

For example, Bloomberg published a piece in December of 2018, which noted that Morgan Stanley, Citigroup, and Goldman Sachs have all shelved their cryptocurrency-centric plans – at least for the moment being.

Be that as it may, the mere potential of a large-scale entry of institutional actors into the cryptocurrency industry is nonetheless intriguing. As always, it remains to be seen whether Panigirtzoglou’s prediction comes true or not.

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