Susquehanna Exec: Bakkt and Fidelity Could Offer Support to Bitcoin
What would be the catalysts for Bitcoin’s price to rebound? The unexpected selloff in cryptocurrency markets have surprised many traders and analysts; they are now looking at the catalysts that could help crypto coins to bounce back both in the short- and long-term.
The Bitcoin price and the rest of the cryptocurrency market plunged substantially over the last week after experiencing a period of stability in the previous two months. The cryptocurrency market capitalization plummeted to $150 billion for the first time this year while the majority of coins have lost all the gains that they had generated during the last year bull-run.
Bakkt and Fidelity Could Improve Volumes and Cash Inflow
Susquehanna Analyst, Bart Smith, says the huge drop in the Bitcoin price was the results of low liquidity and sluggish volumes. He blames crypto exchanges for lower volumes; the analyst said it is quite hard for an ordinary trader to take part in crypto markets through platforms like Bitstamp and Coinbase – these platforms require traders to provide a lot of documents and government certificates before investing in crypto coins.
Bart Smith has strongly criticized governments and crypto platforms for setting hard rules. He says strict rules have limited the crypto markets to a small group of investors.
Explaining the argument, he said, “Number one, the on-ramps for new capital is very difficult. If you’re a global institution, it is still very difficult to buy Bitcoin in a way you might want to. A wealthy individual from the G.I. Generation is not going to take a high-resolution picture of their driver’s license and send it to a website and send money there. They want to invest with Fidelity. They want to invest with Bank of America.”
The expert, however, is optimistic that the involvement of Fidelity, Goldman Sachs, and Bakkt would not only improve institutional investors but that these platforms would also promote investments from retail investors.
“Hopefully, with Bakkt, Fidelity, and further regulations, there are going to be enough capital to soak it up,” he added.
The cryptocurrency markets are waiting for hints of new investments to recover the trading volume and price that they had lost throughout this year. Susquehanna analyst, Brat Smith, is certainly right that trading and custodial services from prominent institutions like Bakkt and Fidelity would gradually improve trader’s sentiments.
Do you agree with Brat Smith? Share your thoughts with us in the comment section below.