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[Londres, 18 de Reuters]- The price of Bitcoin, a typical crypto asset (virtual currency), is approaching the record high in 2017. Proponents of Bitcoin expect the recovery is unlikely to be as deep as it was before, as enthusiastic individual investors are less involved. However, analysts warn that Bitcoin is far from a safe investment destination, as it is still rarely used as a payment method and global uncertainty about the financial market in general is widespread.
“There are a lot of things that are different from what happened before,” said Larry Thermac, director of research at The Block, a virtual currency media company. “Prices are rising steadily, with little individual participation, the market is much more liquid and much more accessible to institutional investors, but it is still very risky so far.” That is to say.
BitcoinBTC = BTSPThe price of the product broke the $ 18,000 level on the 18th, the highest level since December 2017, and the rate of increase since the beginning of the year reached around 160%.
This momentum is comparable to that of 17 years. At the time, the purchase of individual investors spread and jumped to almost $ 20,000 at one point, then fell to less than half a month later, but is now working effectively in the derivatives market and stockpiling of existing large financial institutions. . The infrastructure environment, like the services, is incomparably well prepared.
For example, the CME group that started in December 2017CME.OBitcoin futures have exceeded $ 1 billion for the first time this week. According to crypto data provider Skew, the size of the main bitcoin-related options market, which was close to nil in early 2019, has expanded to just over $ 4 billion.
Meanwhile, Fidelity Investments and Nomura Holdings8604.TMajor financial institutions like Bitcoin and other virtual currencies have started a custody service for institutional investors.
Ryan Serkis, CEO of Mesari, which handles virtual currency data, said: “In terms of market maturity, there is no comparison between 2017 and now. At that time, there were few derivatives and credit markets and institutional investors. There were no protective custody for that purpose. “
The advent of this type of infrastructure has made it easier for institutional investors, from hedge funds to family offices, to invest in virtual currencies.
Tim Swanson, market information manager at ClearMatrix, a blockchain software company, said: “Since usability has completely changed from three years ago, the number of investors who are actively entering the virtual currency market is expanding.” . He says. If institutional investors enter the market, liquidity will be greater and price fluctuations will be less.
On the regulatory front, virtual currencies are still largely aimless, but international standards have been introduced in areas such as the fight against money laundering, paving the way for large investors.
Last month, payment service giant Paypal HoldingsPYPL.OAnnounced that it will open a virtual currency trading platform Rival SquareSQ.NHe revealed that he invested 1% of his total assets in Bitcoin.
The difference from 2017 is that the government and central bank have recently launched large-scale monetary and financial policies as a countermeasure against the new corona virus pandemic, and the market is becoming more risk-oriented and the price of bitcoin is being supported. .. Proponents argue that the 21 million Bitcoin supply limit is a hedge against policies that promote inflation.
Richard Galvin, Digital Asset Capital Management, a crypto fund, brings all these stories together and says that those who can participate in bitcoin prices, including those who are most loyal to the principles. He noted that there is room for expansion.
However, even though the infrastructure has improved and been recognized by major investors, Bitcoin’s price movement is not stable. The crypto sector remains uncertain, less regulated than traditional financial markets, scarce transaction data, and widespread concerns about market maneuvering.
“In short, Bitcoin is a risk market and a risk asset,” said Colin Pratt, virtual currency consultant.
Also, even if bitcoin trading becomes so active, it is rarely used as originally intended. AJ Bell Chief Investment Officer Las Mold said: “Given the cost of mining and usage, and the peace of mind that contactless electronic payments can be used with cards and smartphones, Bitcoin is widely used as a ‘currency ‘There is no guarantee that it will be used. “
(Tom Wilson reporter, Anna Irrera reporter)
