JPMorgan strategist Nikolaos Panigirtzoglou said that Wall Street institutions could become more interested in Bitcoin soon.
“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,” said Panigirtzoglou, “The cryptocurrency market was a new market. It went through a bubble phase [and] the burst.”
Panigirtzoglou predicts that firms will show a renewed interest in cryptocurrencies as stability in the market grows and as Bitcoin’s underlying blockchain technology grows more important. He added that a Bitcoin’s resurgence could be years away, as regulators are a “bit slow to realize” the potential of the cryptocurrency.
Many have predicted that increased involvement from institutional investors on Wall Street would inject much-needed capital into the cryptocurrency space, particularly after markets suffered a bear year in 2018. In June 2018, Cardano (ADA) co-founder Charles Hoskinson, said that the entry of Wall Street into the sector will bring in “tens of trillions of dollars.”
However, some reports from late last year suggest that Wall Street has postponed its crypto plans, as the bear market continued to sink lower. In late December, Bloomberg reported that financial sector majors like banking giant Goldman Sachs, multinational financial services company Morgan Stanley and banking conglomerate Citigroup Inc. have shelved crypto-related projects for the foreseeable future.
Twitter’s CEO Jack Dorsey remains optimistic about the future of Bitcoin as it is purportedly the only cryptocurrency that he owns. Dorsey said that Bitcoin had a “great brand” and that, “Bitcoin is resilient. Bitcoin is principled. Bitcoin is native to internet ideals.”
Dorsey has gone so far as to say that Bitcoin will become the world’s single currency within a decade, stating, “The world ultimately will have a single currency, the Internet will have a single currency. I personally believe that it will be Bitcoin.”