In a recent Bloomberg broadcast, Mati Greenspan, eToro senior market analyst, saw positive signs for cryptocurrency, saying that the market was about to receive a new flow of liquidity from Wall Street.
Among many issues faced, volatility may not be one that Wall Street giants are used to but Greenspan says it has been in a consistent state of play since the very beginning.
He said,”The dip we’re talking about is actually nothing new for Bitcoin, as far as percentage terms go. If we look at it historically we’ve seen these type of pullbacks before, and definitely Wall Street is getting involved and they are building the bridges as we speak. Whether they go full on Bull or full on Bear, we don’t know, and they are ready to inject new liquidity into the market.”
Greenspan went on to explain that Wall Street missed the boat when it came to last year’s all-time high, with Chicago exchanges CBOE and CME launching Bitcoin futures right at the precipice in the Bitcoin high.
He reflected that the future of Bitcoin in the financial ecosystem would remain unknown, pointing out that the cryptocurrency operates as an individual entity, not part of the central banking monopoly.
In December and January, the Bitcoin network experienced congestion due to the newfound popularity of the currency, inevitably causing some concern for the future of the coin.
Compared to two years ago when fees were next to nothing, the reporter commented that “it takes forever to get it through the system” during congested periods.
“Since then the price has come down, the interest has come down and right now if you were to send a transaction it would be instant, comparable to many years ago, this is why we need more liquidity in the market,” came the reply.
A new scaling proposal is currently being rolled out for Bitcoin in the shape of the newly-developed Lightning network protocol. It effectively creates a layer on top of the blockchain, enabling fast and cheap transactions which can settle payments off the blockchain.