Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Analyst Jeff Currie believes more institutional money is needed to stabilize the market.
After more than a decade of extreme price volatility, Bitcoin (BTC) is finally starting to mature as an asset class, according to Jeffrey R. Currie, Goldman Sachsâ global head of commodities research.Â
In an interview with CNBC, Currie said Bitcoinâs remarkable run has attracted greater institutional interest, but noted that smart-money investors are still a tiny fraction of the overall market. They will need to come in droves for Bitcoin to become a stable asset and avoid a flash crash like we saw earlier this week, he said.
âI think the market is beginning to become more mature,â Currie said of Bitcoin, adding that âvolatility and those risks that are associated with itâ are common for nascent assets.
He continued:
"The key to creating some type of stability in the market is to see an increase in the participation of institutional investors and right now theyâre small [...] roughly 1% of it is institutional money.â
Some of Wall Streetâs biggest names have thrown their weight behind Bitcoin over the past year. Legendary investors Paul Tudor Jones and Stanley Druckenmiller have already invested in the digital asset, and firms like MassMutual and Ruffer Investment Company have acquired sizable positions in BTC.
Last month, Anthony Scaramucciâs hedge fund, SkyBridge Capital, submitted an application with the Securities and Exchange Commission to launch a new Bitcoin fund.
Thatâs on top of the tens of billions invested by MicroStrategy, Grayscale, PayPal and Square combined.
Goldman Sachs has even changed its tune on Bitcoin and cryptocurrencies more generally. The firm has not only beefed up its human resources to include digital currency experts, but it has also issued guidance on the peaceful coexistence of Bitcoin and gold as macro hedges.
Coinbase, one of the worldâs largest crypto exchanges, has also reportedly tapped Goldman for its forthcoming IPO.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.