A survey based on 25 private institutions and nearly 10,000 Twitter responses indicates that Wall Street is more bullish on the BTC price market than Main Street. The research was conducted by Fundstrat Global Advisors. The firms MP, Tom Lee, has been one of the most vocal proponents of the cryptocurrency market and has called that bitcoin will reach USD 20,000 earlier this year.
Wall Street BTC price optimism
54% of the private firms believe that the BTC price has reached a bottom. Additionally, 57% of the firms stated that bitcoin would be anywhere from USD 15,000 to “the moon” by the end of 2019. This can be contrasted with the Twitter responses, where 66% believe that the BTC price could drop further than it is currently trading, around USD 6,500.
While it has not been trading anywhere near its all-time highs reached in late December 2017, bitcoin has been trading within a tight band in the USD 6,000 to USD 7,000 for the past six months. It is far less volatile that it was, and given that adoption and regulation are increasing, it is fair to say that the asset has significant upside potential.
In a recent CNBC Fast Money interview, financial advisor Ric Edelman suggested that all investment advisors should educate themselves about the space and that a 1-5% portfolio allocation in cryptocurrency should soon become common. This is all indicative of a bitcoin price increase. As noted by Edelman, the bitcoin ETF decision could change everything when it comes to pass, and he believes that it is simply a matter of time.
Institutional investors on board at last?
There has been significant hype surrounding institutional investment. It is believed that when the billion dollar funds and pension plans have a way to gain exposure to the market, the price of crypto assets will skyrocket. This is primarily why the Bitcoin ETF story is receiving so much attention – it provides a way for such funds to gain exposure to cryptocurrency without violating any legal rules. As it stands, most funds cannot invest in cryptocurrency despite its notable advantages. They cannot even advise clients to invest due to regulatory uncertainty.
However, there is evidence to suggest that institutional investors have been accumulating bitcoin via the OTC market for quite a while. It would be naive to believe that high profile corporations and institutions have simply been completely ignoring the cryptocurrency market, created over ten years ago.
The question is whether or not these institutions have been investing in cryptocurrency or cryptocurrency derivatives. In the event of fiat collapse, it will not matter how many derivative contracts are outstanding on any asset class. And fiat collapse and replacement is a fundamental component of cryptocurrency, a point which everybody has forgotten.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.