Back to top

Should we wait for the digital currency appreciation?

Wall street develops bitcoin market

Wall street is planning to develop the world of bitcoin – only in May several well-known companies announced the intention of opening their own platforms to sale the cryptocurrency. Seemingly such an event should have caused an increase in bitcoin price, since large investors will get an opportunity to invest in cryptocurrency.
However, everything is the other way round so far.

Bitcoin became significantly cheaper in May

Neither the desire of the investment bank Goldman Sachs to begin sailing futures on the bitcoin, nor the decision of the Intercontinental Exchange to allow institutional investors to buy electronic currency caused the growth of the digital currency.

bitcoin course may 2018

Thanks to these derivatives, large investors will get access to the cryptocurrency market (it is still unknown how the industry regulation will take place). Futures and swaps will allow stock market players to bet on any asset value. At the same time, they will be in the CFTC sphere of regulation.

Other companies also consider options for investing in the digital currency market. For example, Bloomberg recently announced the launch of an index for major liquid cryptocurrencies.

The financial “monsters” showed such attention to electronic currencies before. Thus, the futures contracts on bitcoin were concluded in 2017 (record-breaking bitcoin statistics period). A couple of months ago, BNY Mellon executives expressed their intention to strengthen the protection level of bitcoins. The amount of assets held by a financial institution reaches $33 billion.

Protection of assets from hackers is considered to be one of the most important problems for cryptoinvestors, because exchanges have repeatedly incurred losses from virtual attacks

Analysts leave open the possibility that the bitcoin price could be even lower, if it weren’t for close attention of Wall Street. However, it is clear that the financial players’ entry into the digital currency market has not caused a stir and a great price leap, as it happened a year ago.

1 Star2 Stars3 Stars4 Stars5 Stars (No ratings yet)