Head Trader at Octagon Strategy, Ryan Rabaglia, acknowledges that the markets have been under pressure and are well off their highs, but that stepping back and looking at a long-term chart reveals Bitcoin is up over 100% in the past year.
Rabaglia says the cryptocurrency market is still in a growth phase, being only eight years old, and that there are numerous obstacles to overcome which explains the downward price movement this year. He told CNBC that Octagon Strategy was still bullish on Bitcoin, and was operating in the cryptocurrency space in a bullish manner.
The head trader says cryptocurrency regulation is a “double edged sword”. He says that regulation is applying downward pressure to the market due to the uncertainty surrounding regulation since cryptocurrency companies, traders, and investors don’t know what to expect from a day to day basis and try to avoid risk accordingly by pulling out of their cryptocurrency investments.
However, regulations will eventually mature and the situation will stabilize. Rabaglia says that once regulation is established, institutional investors will feel safe enough to enter the market and they will get the support they’ve been looking for from the regulatory environment. Essentially, he is saying that Bitcoin is experiencing growing pains but these pains will eventually end and growth will resume.
Rabaglia’s thoughts echo the views of other cryptocurrency experts. There is a general consensus that the playing field for institutional investment into cryptocurrency is being set up, and proper regulations are fundamental for this to occur. A combination of established regulations and cryptocurrency custodianship will facilitate institutional investment, which would bring more money into the cryptocurrency markets than ever before.
Ethereum co-founder Charles Hoskinson says tens of trillions of dollars will enter the market from institutional investment. Kyle Samani says proper cryptocurrency custodianship, like the services being offered by Coinbase and Xapo, have torn down the final barrier to institutional investment.
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