Monday, April 22, 2019

Well Known Bitcoin Pessimist Agrees That Bitcoin Could Make A Major Comeback

Nikolaos Panigirtzoglou, a JP Morgan analyst who was once bearish about Bitcoin, is now of the opinion that the digital asset can still make a major comeback. According to him, the cryptocurrency market is a new one, and it has passed through the bubble and burst phase, reports a media outlet on February 7.

Next Stage of Adoption Will be from Financial Institutions

Nikolaos Panigirtzoglou while in an interview with CNBC, noted that Bitcoin can still have a positive outcome in the long run. Panigirtzoglou attributed this to the fact that crypto has gone through the bubble and burst stage and its price is now stable. Therefore, that could set the stage for an institutional adoption which may significantly impact the value of cryptocurrencies.

In his own words:

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.

Clarity in Regulations Will Give Institutional Investors More Confidence

In the same vein, JP Morgan’s analyst stated that an increase in the clarity of regulations would make investors more confident about the legal status of Bitcoin. According to him, regulators are the major problem at the moment because they are slow to address issues relating to emerging technologies.

Panigirtzoglou’s recent opinion is contrary to his statement in December 2018. At that time, his stance was that the bear market has made financial institutions scared of investing in digital assets. He had also pointed out the decline in the trading volumes in the crypto market as well as that of Bitcoin futures.

The Opinion of Other JP Morgan Analysts May Change

Hopefully, other JP Morgan analysts’ opinion about Bitcoin and generally cryptocurrencies might also change. For instance, Joyce Chang, JPMorgan’s chair of global research on January 28 stated that cryptocurrencies need to be separated from Blockchain. She backed this up by saying that the latter has more use cases than virtual assets.

Fidelity Investments, a multinational financial services corporation, on the other hand, is already testing its cryptocurrency custody platform. BTCNN on January 31 revealed that it might be a Bitcoin custody which is targeted at large investors. These are people who may be more willing to enter the market and store their funds with a more reputable company in comparison with startups who are also offering the same service.

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