Wall Street Is Headed Straight For Bitcoin, Says Analyst

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Wall Street has not been at the forefront of bitcoin trading in the past. However, that looks ready to change. The approvals of three bitcoin ETFs in the past week have caused more institutional interest in the digital asset and Wall Street brokers are starting to turn their attention to the cryptocurrency. The first Bitcoin ETF recorded trading volumes of more than $ 1 billion on its first day. This success did not lose the Wall Street radar.

Analyst Christopher Brendler sat down with Coindesk to talk about the future of bitcoin on Wall Street. According to Brendler, Wall Street brokers are becoming increasingly positive about BTC investments. It’s important to note that bitcoin has surpassed both the Nasdaq and the S&P year after year, as seen in report from Wealthier Today.

Interested In Bitcoin And Mining

Brendler has previously compared data about how the bitcoin mining industry was viewed by players on Wall Street. He found that brokers had a positive outlook on the industry soon. Brendler estimated that about 15% of Wall Street brokers on the payroll side of business began to take investments in the cryptocurrency more seriously. This number was at a meager 5% of Wall Street brokers at the beginning of the year.

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Interest has largely grown due to the growth of bitcoin in the past year. The asset, whose price was below $ 30,000 at the beginning of the year, grew more than 100% to a new all-time high in October.

Bitcoin price chart from TradingView.com

BTC price suffers beatdown from $63K | Source: BTCUSD on TradingView.com

The asset itself was not the only one to record huge growth in recent months. Mining stocks also benefited from the market buildup. The report stated that mining stocks Marathon Digital and Riot Blockchain have seen growth up to 1,500% and 600% respectively in the past year, considerably higher than the 377% of BTC in the last year.

Institutional Investors Flow

Institutional investors continued to set up their tent with bitcoin. This has translated into more interest in the Wall Street brokerage market. Bendler noted some skepticism from these investors. However, they still remained bullish on the digital asset in the long run. “Although most investors are still new to this area, there have also been quite a few already involved and able to delve deeply into our new coverage,” Bendler said.

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As Wall Street interest grows, we expect to see more inflows in bitcoin. The money coming will help move the price of bitcoin both in the short and long term.

Bendler explained that the investors familiar with the market were bullish crypto miners. Although they erred on the side of caution when it comes to valuation in space. This, however, did not cause them to move away from space. With returns from the crypto market hitting traditional investment vehicles, it’s only a matter of time before Wall Street is fully invested in the market.

Featured image from Ethereum World News, chart from TradingView.com

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