Home / Crypto Currency / Large Retail Investors See an Opportunity in Bitcoin Despite Price Decline

Large Retail Investors See an Opportunity in Bitcoin Despite Price Decline


Advertisement

Join our community of 10 000 traders on Hacked.com for just $39 per month.

The bitcoin price has been on a decline since January, and analysts believe the mid-term correction of bitcoin was caused by the massive sell-off by Fortress and Mt. Gox trustee. Still, retail investors are seeing a good opportunity to enter the cryptocurrency market.

Institutional Demand

Throughout its 10-year history, bitcoin has had many major corrections. The recent decline from $19,000 to $6,000 was the third worst correction to date, recording a 72 percent drop in value.

History shows that bitcoin has always been able to recover from its major corrections to previous all-time highs and initiate new rallies. Investors like Tom Lee and Peter Thiel have stated that the recent bitcoin correction will be similar to its previous ones, and bitcoin will be able to rebound from its losses in the future.

To recover from the recent correction, analysts unanimously agree that the cryptocurrency market will start to see new volumes coming in, from new investors. Lee explained that the new volumes could come from financial institutions and retail investors, as large-scale traders will see an opportunity to invest in the space after a 72 percent drop in prices across the board.

This week, Jeremy Gardner, a co-founder of the successful blockchain project Augur, revealed that investors in over-the-counter (OTC) markets are seeking for multi-billion dollar bids, to invest in the most dominant cryptocurrency in the market.

In OTC markets, investors often deal with miners or other whale investors that hold significant chunks of bitcoin. Multi-billion dollar bids would not have an immediate impact on the public market or the cryptocurrency exchange market. But, if investors start allocating billions of new dollars into the cryptocurrency market, the bitcoin price will likely increase in the mid-term.

“OTC market demand for bitcoin right now is unlike anything I’ve ever witnessed. Several ask for multi-billion dollar bids,” said Gardner.

Disappointment

Since 2015, the bitcoin and cryptocurrency markets have anticipated the entrance of institutional investors from strictly regulated markets like the bitcoin futures market operated by Cboe and CME Group. But, volumes on those markets have been extremely poor, and the demand from retail traders from the west have been virtually non-existent.

Jon Matonis, a cryptocurrency expert, Visa executive, and co-founder of Bitcoin Foundation, stated that if major financial institutions like Goldman Sachs enter in the near future, it could trigger more institutional investors in the west to enter the cryptocurrency market.

“I think it’s fabulous that they’re getting into it because it brings in new liquidity. They’re going to develop futures markets, options markets, I even think you’re going to start to see interest rate markets around bitcoin. We’re used to hearing things about Libor, the index for bitcoin interest rates is Bibor,” said Matonis.

Already, in Japan and South Korea, retail investors have placed large bids on bitcoin and other major cryptocurrencies.

At the moment, given bitcoin’s lack of momentum, traders anticipate the price of bitcoin to bottom out in the $6,000 mark. If it does, and bitcoin potentially initiates a corrective rally in the short-term, bitcoin could experience a short-term recovery.

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement
Read more

Check Also

Crypto Price Watch: Litecoin (LTC), Revain (R) and Factom (FCT) Surge in the Top-50 as Other Altcoins Continue to Struggle

Over the course of the past 6 hours, Litecoin has gained considerable financial traction, with the price of a single LTC token currently hovering around the $27 mark. As can be seen from the chart below, Litecoin has been in a tear of sorts for the past 48 hours, with the currency rising from a respectable $23.82 to where it stands now (all within a span of less than two days). It is also worth mentioning that since December 16, the overall market capitalization of Litecoin has grown from $1.4 Billion to $1.635 Billion. What’s Causing Litecoin to Soar? Upon closer inspection, it seems as though the positive upward trend being displayed by Litecoin is due to Coingate recently announcing support for the currency. For those not aware, Coingate is a crypto payment service that previously only allowed its customers to use Bitcoin and Ethereum for facilitating global monetary transfers. @litecoin community, we bear some exciting news! Our #Litecoin #LightningNetwork is ready to be deployed and will soon be live on CoinGate! Keep up with the news as we’re getting closer! Here’s a little sneak peek @LTCFoundation @SatoshiLite @starkness! pic.twitter.com/QahcnFlYc5 — CoinGate (@CoinGatecom) December 13, 2018 In relation to the matter, a spokesperson for Coingate noted that the firm was all set to deploy the Litecoin Lightning Network on their servers as a result of which, it now appears as though more than 1000 merchants will have the ability to send/receive near instant LN payments. Revain and Factom See Biggest Gains Over 48-Hr Span Two of the biggest alt-coin gainers from the past few days have been Revain and Factom, with the two currencies rising by a staggering 44% and 15% in value (respectively). Factom’s rise can be traced back to the start of the month when the asset was trading for $7.82. However, since then, the currency has surged quite substantially, with the top-50 token now hovering just below the $10 mark. Similarly, in the case of Revain, the currency started its ascent just a few days back when a single token was being traded at $0.01. However, at press time, the currency is now closing in on the $0.175 mark. Final Take As most of our readers already know, the crypto market is currently in the grips of a cold, cold winter that promises to usher in even more misery in the coming few days. To put things into perspective, since mid-November, the digital currency sector as a whole has seen its total market cap drop from a sizeable $211 Billion to a meager $104.7 Billion (at press time). The post Crypto Price Watch: Litecoin (LTC), Revain (R) and Factom (FCT) Surge in the Top-50 as Other Altcoins Continue to Struggle appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.