Blockchain Capital: institutional infrastructure to strengthen bitcoin.

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Spencer Bogart, a partner of a large venture company Blockchain Capital, said that the emergence of bitcoin in the institutional sector will strengthen it and can raise the price to $50'000.

Although the capitalization of the cryptocurrency market fell by 85% since reaching $816 billion in January with the participation of Nasdaq, Fidelity, NYSE, Bakkt and other major financial institutions, according to Bogart, the infrastructure supporting bitcoin will quickly strengthen.

What will 2019 be like for bitcoin?

At the end of 2017, when the crypto market saw one of the largest bullish trends in recent history, and the price of bitcoin exceeded 19'000 dollars, while retail traders and individual investors basically raised the market to new highs.

In the long term, Bogart said that building a strong infrastructure with security, investor protection, liquidity and compliance would facilitate capital inflows from institutional and accredited investors.

As previously reported, funds such as Yale University have invested in cryptocurrency space through regulated funds, and an increasing number of financial institutions have become custodians of assets to facilitate transactions for large institutions. Bogart said:

Meanwhile, the institutionalization of the asset class and the ecosystem itself is only intensifying. We've seen donations made by Yale University, Harvard, and the Massachusetts Institute of technology move into the sphere. We saw the Nasdaq and Bakkt move to bitcoin derivatives. We've seen skilled asset keepers move into this space. And finally, and perhaps the most encouraging thing is the quality of the people we see in the field.

The next cryptocurrency rally could be triggered by a new group of reputable and accredited investors, and Bogart stressed that, in his opinion, the dominant cryptocurrency could reach $ 50,000 in the long run.

50 ' 000 dollars

Despite the negative market sentiment and falling cryptocurrency prices, the digital asset industry has made progress in institutionalizing the asset class and creating products that can enable the market to attract investors to the traditional financial sector.

Whether bitcoin is worth $ 3,000 or $ 10,000 is of little interest to institutional investors; the most important element in stimulating institutional investors is the infrastructure surrounding the asset class, through regulated and well-structured investment instruments. Bogart said:

Can bitcoin go for $ 50,000? Absolutely. He doesn't have the price, which usually sets an upper boundary or ceiling of a typical company engaged in the development of technologies in the early stages. So bitcoin can go up so high. How long will this take? I'm not sure.

Still immature market

For most investors, bitcoin is still at an early stage of market development in terms of liquidity, infrastructure and trading decisions.

Many regulators and governments, such as India, remain perplexed as to how to regulate the cryptocurrency space and implement practical policies that can benefit both investors and companies in the market.

As the market becomes increasingly clear about regulation and sees growing efforts by leading financial institutions to improve market infrastructure, the asset class can begin to observe capital inflows from institutional investors and through highly regulated OTC (OTC) exchangers.


Link to the source of information (Russian) - https://altstake.io/news/blockchain-capital-institucionalynaya-infrastruktura-ukrepitbitkoin