Considering the non-rewarding market of digital assets, we have seen many financial firms pulling out of crypto space. The bear market has even caused some hardcore crypto businesses to opt out of the crypto industry. However, one Global Market Strategist from JPMorgan is expecting a re-spike in the crypto market.
JPMorgan’s Global Market Strategist Nikolaos Panigirtzoglou is someone who firmly estimated the bearish trend in the crypto market less than two months ago, especially in financial institutions. At the time he was behind a report from JPMorgan which claimed that major firms are losing interest in cryptocurrencies. The report also said that the involvement of financial institutions in Bitcoin trading was fading.
Now, at CNBC’s Futures Now interview, Panigirtzoglou predicted that in the long run, the crypto sphere would have its resurgence on Wall Street firms. He said,
“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] the burst.”
He believes that the difficulties coming in the way of cryptocurrencies will set the environment for potential institutional adoption. The involvement of such firms will lead to next great Bitcoin bull run. Here, he has shown quite an optimistic attitude towards the cryptocurrency economy, as compared to his previous statements. Back in December Panigirtzoglou issued notes to clients saying that the effects of crashing prices had harmed the interest of crypto-curious firms on Wall Street.
Panigirtzoglou expressed that the confidence of financial firms will develop in the crypto world with the increased stability in the market. He also considered the growth of Bitcoin’s underlying blockchain technology as a crucial factor. He thinks that improved regulatory clarity will also help to strengthen the overall adoption of cryptocurrency. However, Panigirtzoglou finds regulators a “bit slow to realize” the potential of the cryptocurrency.
According to the frequent estimations, the participation of institutional investors in crypto space will inject more capital in the market. But, Wall-Streeters are delaying their plans to step into digital assets market, looking at still sinking market.