Financial institutions have started to go all in on the Crypto Industry and will shape the direction of the market in the coming years.
What is fascinating is the pace in which things are moving forward.Oliver von Landsberg-Sadie, CEO of BCB said:
“The 2013 bubble was driven by technocrats and dark web trawlers and the 2017 rally was led by the whims of speculative retail traders, 2019’s growth belongs to financial institutions who are diversifying stale portfolios and finally have the professional machinery to do so.” as he compared the various bull runs experienced over bitcoin’s lifecycle, excluding this year’s growth.
Last month saw 9 financial institutions based in the UK for banking and over-the-counter trading have joined BCB in this journey. This takes the total count to 32.
“This is a fundamental shift in client profile compared to last year which was dominated by crypto projects looking for liquidity.” He added.
Several Established banks have plans of issuing their own cryptocurrencies on their private blockchains alongside supporting a variety of blockchain projects focused on commodity trade finance and shipping.
Kari S. Larsen, a partner at Perkins Coie’s Blockchain Technology & Digital Currency group in New York says:
“Exchanges are changing their focus from retail traders to institutional traders, providing such customers better ability to customize the front end of their trading platforms and providing APIs that better suit what institutional traders are used to.”
According to Larsen, The Financial Industry Regulatory Authority are looking to move very slowly with broker-dealer applications from companies looking to provide services supporting security tokens or related crypto products.
However, Facebook’s Libra can changes things on a global scale for better or worse.
Facebook’s constant struggle with regulators will set a standard for the industry’s future and can be the best way to speculate the future direction of the Cryptocurrencies.
A potential Libra/BTC pairing can pose a threat to the existing traditional financial system.
Future of Crypto
Regulations can make or break BTC as it has been treading along 10000-range for the past few months. BTC was all over the place from $13,880 on June 26 to dropping down to $9,950 and now currently priced at $10,550.
With everyone trying to put a leash on Crypto Industry and to control it in some way or the other, the whole market is more volatile than ever. A new regulation or failure of Libra can lead to a huge collapse in the market that might take years to recover.
With prices going up and down every day it certainly is a fascinating time to be a Crypto Enthusiast, this year will most likely go down in History as a Year that changed Cryptocurrencies forever.
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