The reason for the recent decline in the exchange rate of bitcoin is the low liquidity of cryptocurrencies, and to avoid the recurrence of such a situation and to bring to market new investors will allow cryptocurrency services Fidelity Investments and Bakkt, the launch of which is planned for the coming months. This was in conversation with CNBC said the head of the unit of digital currency trading giant Susquehanna Bart Smith.
As #bitcoin plunges and nears $4,000, Wall Street”s Crypto King Bart Smith of Susquehanna says he’s still a long-term believer in the cryptocurrency. pic.twitter.com/SzsL9tZAhB
— CNBC”s Fast Money (@CNBCFastMoney) on 20 November 2018
According to him, channels of receipt of capital from large financial institutions in the cryptocurrency market confusing. In particular, it is connected with tough regulation of cryptocurrency exchanges in the United States, Japan and South Korea.
“Cryptocurrency investors are yet limited group of people with specialized knowledge. Global institutions are difficult to buy bitcoin as they would like. For example, they would prefer to invest through Fidelity or Bank of America”, — said Smith.
At the same time, the expert added, no new investments reduces the overall liquidity of the stock market.
“During the summer we saw a stable price of bitcoin at around $6000. However, after a controversial fork of Bitcoin Cash that is not contributed to increase the level of confidence in the cryptocurrency, came the sellers, to absorb the suggestions which liquidity proved to be insufficient”, — he explained.
In conclusion, Bart Smith expressed the hope that the services Bakkt and Fidelity, with the assistance of regulators open to large investors the road to the stock market and balance supply and demand.
Recall that the first products of cryptocurrency platform Bakkt will be futures contracts on the bitcoin physical delivery of the asset. The service startup is scheduled for January 2019.
In turn, the Fidelity of Digital Assets aimed at the launch of the service of cold storage scriptaction.