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The price of bitcoin was hammered in the prolonged Crypto Winter in 2018, but many investment experts predict that volatility will decline in 2019, when institutional investors will begin to enter the market.
Some analysts believe that the bitcoin will reemerge – like the proverbial Phoenix that rises from the ashes – on the back of the momentum created by institutional investors, according to the Australian Financial Review.
"During the next year we will see a gradual adoption by the institutions," said Henrik Andersson, Chief Investment Officer of Apollo Capital Fund in Australia. "We have the first US university facilities that invest in funds".
JPMorgan: Bitcoin Bears Scared Off Institutions
During the summer, the multi-billion dollar assets of Harvard, Yale and Stanford stunned Wall Street after revealing that they had invested in cryptocurrencies.
Because of the mentality of institutional herds, analysts say the move will likely trigger a chain reaction among other institutional investors, such as pension funds.
"The fact that David Swensen [Yale’s chief investment officer] put an investment in bitcoin – with its reputation on the forefront, its online endowment – it tells you something, "said Novogratz." Some of the smartest people in the investment world think it's a store of value. "
The influx of institutional investors – which some expected towards the end of 2018 – was blocked by the unexpectedly hard bear market. Reportedly, the institutions have been frightened by the protracted recession, said analyst JPMorgan Chase, Nikolaos Panigirtzoglou.
The bitcoin bear market is scaring institutional investors, complaints JPMorgan https://t.co/HHmEKe49kV
– CCN (@CryptoCoinsNews) December 18, 2018
While Wall Street appears ready for further turbulence, analysts say that cryptographic resources could be sustained because they are not related to the regular stock market – making them a good investment during volatile periods.
Tom Surman, the director of Every Capital – Australia's first cryptic retail investment fund – believes the institutional phase for cryptography has begun silently.
"Massive retail offers and institutional investors are probably the only groups that can significantly shift the needle on the cryptographic market cap from here on," said Surman at the Australian Financial Review.
Push to Legitimize Crypto is underway
However, observers argue that mainstream adoption depends on regulatory clarity to help legitimize the market. So how it is, the move to promulgate targeted regulation of the sector has already begun.
In December 2018, US lawmakers proposed legislation to prevent bitcoin price manipulation and to position the US as a market leader.
Congressmen Darren Soto and Ted Budd are pushing for widespread adoption of the crypt, saying that the United States should not ignore its "deep potential" to sustain the economy.
"Virtual currencies and the underlying blockchain technology have deep potential to be an engine of economic growth," said Soto and Budd. "That's why we have to ensure that the United States is at the forefront."
In September 2018, a pro-cryptographic pressure group was launched in Washington, DC by three of the largest cryptocurrency companies in the United States:
- Coinbase
- Circle
- Group of digital currencies.
The move indicates that the industry is taking concrete steps to advance the traditional crypto adoption by joining the wheels of Congress.
"We have been very active with Congress, with policymakers," said Jeremy Allaire, Circle co-founder, a unicorn crypto with a valuation of $ 3 billion.
France launches the Blockchain Gauntlet
Through the tin in Europe, French lawmakers are aggressively pushing for the adoption of blockchains. Some even suggested that the Bank of France or the European Central Bank issue their own digital currencies.
Laure de La Raudière, a member of the French Parliament, said that France must move quickly to capitalize on blockchain and crypto before its international rivals make China and the United States.
De La Raudière complained that France was lagging behind the Internet revolution in the 1990s, and should not lose the boat again.
"France must have a conquering philosophy on this subject," he told the French financial site Journal du Net. "I'm sounding the alarm."
The French pro-crypto parliamentarians want to invest 500 million euros to create the French "blockchain nationale" https://t.co/H4gxrZQKwJ
– CCN (@CryptoCoinsNews) December 13, 2018
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