Bill Baruch, the President at Blue Line Futures, a trading company in Chicago says that the Bitcoin bounce still has legs.
After fighting regulation headwinds and tax selling, the value of Bitcoin rallied 40% in April, from $7000 at the beginning of April to $9335 at press time. Bill Baruch predicted about Bitcoin’s bullish run earlier this month as well and mentioned an ultimate upside of $11500-$11800. He stated that the path of least resistance will hold higher as long as the price is above $7700.
Following this, a survey by Thomas Reuters found that, out of its 400 clients, 20% were looking to join the cryptocurrency market over the next 3-12 months, with 70% of those looking to start in 3-6 months.
Neill Penney, Co-head of trading at Thomson Reuters, said:
“Cryptocurrency is still a relatively small part of the trading market, but this survey makes clear this niche segment is starting to enter the mainstream of the financial services industry. This is a major change from a year ago.”
Major bank Goldman Sachs Group Inc. has made its first cryptocurrency specific hire as well. The hire of Justin Schmidt, former Senior Vice President of Seven Eight Capital, marks the shift of big Wall Street banking institutions towards cryptocurrency.
Kevin Murcko, CEO of cryptocurrency exchange, Coinmetro stated:
“Historically, the banking sector has been notoriously dismissive of the crypto movement. Cryptocurrency has variously been called a bubble, an asset for criminals, and worthless. But today’s survey demonstrates that while financial institutions are saying one thing, they’re doing quite another.”
Kevin went on to say:
“We’re witnessing a gradual institutionalization of the market, and this is sure to drive mainstream adoption. The move to accommodate digital currencies is also a symbolic one; it’s a sign of growing maturity in the market, and represents just how far cryptocurrency has come since its days of relative obscurity.”
The move of mainstream financial institutions into the cryptosphere may lead to increased adoption and create a mature market.
Industry expert Mati Greenspan said in an interview with Bloomberg that:
“Wall Street is getting involved…(they’re) ready to take on and inject new liquidity into the market.”
The future for the adoption of Bitcoin seems bright, according to industry experts.
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