VISA executive says Bitcoin price will surge following the entrance of banking giants and other financial institutions, such as Goldman Sachs, as this will increase the liquidity in the cryptocurrency markets.
3 April, AtoZForex – The co-founder of Bitcoin Foundation and executive at VISA, Jon Matonis, has stated that the entrance of banking giants and other financial institutions, such as Goldman Sachs, will lead to a significant surge in the liquidity of Bitcoin and the price of the pioneer cryptocurrency.
VISA executive Says Bitcoin Price Will Surge
He has been quoted as saying:
“I think it’s fabulous that they’re getting into it because it brings in new liquidity. They’re going to develop futures markets, options markets, I even think you’re going to start to see interest rate markets around bitcoin. We’re used to hearing things about Libor, the index for bitcoin interest rates is Bibor.”
As we all know, the digital currency market is extremely volatile. One of the key reasons for this is that the market lacks liquidity. The daily trading volume of Bitcoin and other crypto has significantly dropped since a major correction has taken place this January. The daily trading volume has dropped along with Bitcoin prices.
This dip has enabled some of the market whales and institutional investors in the futures to manipulate the market movements, which is one of the key reasons for the correlated market price movements over the past few months.
In fact, just some time ago, the Chicago Board Options Exchange (Cboe) has suggested that the US Securities and Exchange Commission (SEC) would allow Bitcoin exchange traded funds (ETFs) on US stock markets, such as Nasdaq and the New York Stock Exchange (NYSE). The entrance of large banking institutions such as Goldman Sachs will eventually lead to more institutional and retail traders flowing into the crypto space.
When will banks be ready to enter crypto space?
As of the moment, the demand from the institutional investors in the US is somewhat high. However, the actual capital flowing into the cryptocurrency market from the public finance industry is at the very low level.
Mr. Matonis has further highlighted that to the skeptics that have referred to Bitcoin as a bubble, Bitcoin in reality is not a bubble, but a pin that would destroy the global financial bubble. He has stated the following:
“To the people who say bitcoin’s a bubble, I would say bitcoin is the pin that’s going to pop the bubble. The bubble is the insane bond markets and the fake equity markets that are propped up by the central banks. Those are the bubbles.”
It is still unclear when major banks will be entering the market. The cryptocurrency market’s image has been damaged in the past months, yet, in case the market recovers in the short term, banks will prepare to address the growing demand for the crypto space.
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