Nikolaos Panigirtzoglou, an analyst at J.P. Morgan, believes that more participation by institutional investors in the cryptocurrency market can happen in the future.
In December, Nikolaos Panigirtzoglou, stated that the interest of financial institutions in bitcoin trading was fading. This Tuesday, however, the analyst claimed that the losing interest in cryptocurrencies by major firms isn’t ruling out renewed interest.
While asked on CNBC’s “Futures Now” Panigirtzoglou said that the current cryptocurrency situation is likely temporary. Bitcoin fever could return to Wall Street when firms renew their interest in crypocurrencies as stability grows.
Nikolaos Panigirtzoglou said to CNBC:
“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,” he said. “The cryptocurrency market was a new market. It went through a bubble phase [and] the burst.”
That firms might, and should, renew their interest in cryptocurrencies does not mean it will happen anytime soon. Looking at slow regulations, Panigirtzoglou thinks a new Bitcoin fever could be years away.
“The big obstacle is regulators right now,” Panigirtzoglou said, adding that regulatory oversight is a “bit slow to realize.”
In December 2017, Bitcoin soared to $19,783.21. After that, Bitcoin has been caught up in a bear market. Currently, the cryptocurrency is trading under $3,500, a more than 80% percent plunge from its all-time high.