Crypto markets ‘lackadaisical’ as institutional buying slows — Novogratz

Galaxy Digital CEO Mike Novogratz said the overall cryptocurrency market was “sluggish” or lacking enthusiasm, largely because institutional investors shy away from cryptocurrencies. said there is.

on June 1st interview Novogratz told CNBC that while relatively small individual buyers have provided some stability with their modest holdings, the lack of large buyers is a concern.

“There is a constant stream of bids coming from retailers.

claim echo Coinshare’s head of research, James Butterfill, said in a May 31 report that the purchase of digital assets by institutional investors resulted in a total outflow of $39 million as of last week, marking the sixth consecutive week of outflows. and detailed.

But Novogratz pointed to two key developments in Asia that could help turn the tide.

He first pointed out that Chinese social media app WeChat now offers Bitcoin (BTC) price quotes on the app, which he considers an important milestone given its popularity. rice field. According to him, as of this writing, WeChat’s number of monthly active users is 1.3 billion. data From Statista.

Wechat is available for #bitcoin Search and only Bitcoin.Small but Big Step for China/Hong Kong to Accept Cryptocurrencies pic.twitter.com/DHq4uqnq5C

— Wang Qinwen (@Qinwen_Wang) June 1, 2023

Second, Novogratz turned his attention to Hong Kong. Hong Kong is now the first to officially allow retail customers to trade cryptocurrencies on regulated exchanges, signaling a growing adoption in Asia.

In an interview with Cointelegraph, Swyftx Head of Product Strategy Tommy Honan agreed that the cryptocurrency market has been very “declined” over the last month.

“Institutional activity levels are clearly more subdued than before. But it’s not just institutional investors, retail investors are being hit hard by cost of living pressure,” he said.

Crypto firms are scrambling to deal with the ever-volatile regulatory landscape in the US, but Honan remains hopeful that prices will rebound strongly if the big players decide to re-enter. ing.

Related: Last BTC Price Drop Before $30,000 Breakout? Bitcoin Erases Weekend Rally

“Institutional investors will come back into the market and when they do come back they will come back hard. rice field.

“We need well-established and sensible rules when it comes to cryptocurrencies. Or we need Republicans to win the US election next year. Cryptocurrencies have become madly partisan almost overnight.” But it’s exactly what the industry didn’t want or need.”

Similar to Novogratz, Honan said Hong Kong offers a unique opportunity for the cryptocurrency market, unlocking a new wave of investors in the market, as well as allowing US-based firms to set up shop if needed. He also said he would provide a place to set up.

China Central Television just broadcast news about Hong Kong allowing people to buy Bitcoin, Ethereum and other coins.

This is big news! China is waking up to cryptocurrencies again.

What is happening in Hong Kong is only possible with the approval of the Chinese government. Get ready! pic.twitter.com/Zxdi7UZNHK

— Lark Davis (@TheCryptoLark) May 24, 2023

“We are keeping a close eye on developments in Hong Kong. If Hong Kong is being used by mainland China as a testing ground for the secure adoption of cryptocurrencies, it will be a huge tailwind for the market,” said Ho Nan. said Mr. “We were all looking west for the next Bull Trigger. Perhaps we should have been heading east.”

With Hong Kong opening up to cryptocurrency-related businesses, more companies are vying for licenses.

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