Institutional investors are entering the cryptocurrency market. Large traders monitor its global sentiment to know when to buy or sell.
When gold fell in price between 2011 and 2016, many said it was manipulation that brought the price down from highs to almost $1,000. But will such manipulations, on the contrary, be able to raise Bitcoin prices?
In 2017, Bitcoin rose approximately 1,700%. We believe that 2017 was also the year of institutional investors entering the market. In the long term, this will determine trading in this asset much more than the speculative surge in 2017.
Below we will name several signs of institutional demand for cryptocurrency assets.
First of all, this is the formation of crypto hedge funds; launch of futures exchanges CBOE and CME, which allows large traders to hedge positions with regulatory control over clearing; and the emergence of prime brokers such as Cumberland Mining.
The number of Bitcoin ETFs for which permission has been requested from the SEC indicates the desire of some companies to attract a wider audience to this asset class.
As growth became apparent in January 2018, the beginning futures trading on the CME began to be associated with rising prices. Now that the bear market has stalled, many are waiting for institutional investors to bring back the bull market.
Will this increase in demand for cryptocurrencies and the opportunity for large traders and funds to invest will turn the crypto market back?
This is the common hope of many crypto traders. Their hypothesis is that demand in the cryptocurrency market will drive prices higher. However, crypto traders should not rely too much on this hypothesis.
According to seekingalpha.com
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