Nikolaos Panigirtzoglou, senior analyst at JPMorgan has said that companies will again start taking interest in cryptocurrencies – if the market continues to remain stable.
Panigirtzoglou, a former economist at the Bank of England, had claimed in a report published in December 2018 that financial institutions were not looking to invest substantially in cryptoassets due to their volatile nature. However, the digital asset market is stabilizing which could “set the stage for more participation by institutional investors”, Panigirtzoglou recently argued.
His comments came during an interview featured on CNBC’s “Futures Now” in which he noted that:
The cryptocurrency market was a new market. It went through a bubble phase [and] the burst.
Could Take Several Years Before Cryptos Reach Mainstream
Panigirtzoglou believes the digital asset industry is gradually maturing and that more firms will start re-entering the nascent ecosystem as crypto and blockchain-related technology continues to improve. However, the London School of Economics and Political Science (LSE) graduate stated that it could take several years before cryptocurrencies reach mass adoption.
According to Panigirtzoglou, the crypto ecosystem needs a proper regulatory framework so that investors begin to feel confident about making investments in cryptoassets. He remarked:
The big obstacle is regulators right now … [and regulatory guidelines have been a] bit slow to realize.
On February 1st, 2019, Michael Novogratz, a former partner at Goldman Sachs and the CEO of Galaxy Digital Holdings Ltd, a New York-based firm focused on the digital assets industry (ticker: GLXY), had said that he was “confident” that cryptocurrency prices would recover.
Expressing views similar to those shared by Panigirtzoglou, Novogratz had advised his followers via Twitter to “stay the course.”
Institutions Are Slow “To Move”
Novogratz also thinks digital asset prices won’t recover anytime soon. The former hedge fund manager has predicted that it could take several months before we potentially begin to enter the next bull market. Having worked with Wall Street firms for many years, Novogratz explained that institutions take time “to move”, however he was confident that more big players would enter the crypto space.
Although it is difficult to accurately predict if and when the crypto market will rally again, Novogratz claims there’s plenty of development of work going on “under the hood.” Meanwhile, an anonymous trader, who reportedly earned over $200 million from trading ether (ETH), stated in a recent interview that he thinks “big players will [eventually] enter” the crypto market.
The experienced trader and early bitcoin adopter noted that the “next bitcoin block reward halving will serve as an additional trigger for growth.”