CEO Blockchain: Bitcoin will bypass altcoins, and the institutional effect will materialize in 2019

CEO Blockchain: Bitcoin will bypass altcoins, and the institutional effect will materialize in 2019


While bitcoin continues to remain around $7,300 after its confident leap this week, Blockchain CEO Peter Smith suggests that the market can wait for a positive consolidation, supported by regulatory growth and interest from institutional investors.

“Over the past couple of years we have seen really sharp ups and very sharp descents, and behind them – a kind of consolidation of the market,” he said in a conversation with Bloomberg. “I believe that now we are seeing another slow consolidation. A moderate and positive consolidation is likely in the next quarter.”

He also explained that now the cryptocurrency market is becoming more legitimate, as regulatory certainty increases, which is a significant achievement in relation to what happened in previous years. In addition, the market observes the inflow of investments of a different type. According to him, the flow of institutional money continues to increase.

Speaking about the volume of trading and the activity of new accounts, Smith said:

“This is a fairly small retail market. Historically, the markets are headed by retail investors. But now there is a shift towards the institutional market. That’s why bitcoin outruns its competitors. Institutions that enter this market usually buy bitcoins first, so I expect that it will outperform other large cryptocurrencies in the next 6 months.”

However, much has to be done to materialize this effect.

“A lot of questions are related to the infrastructure that is needed to allow these institutions to enter the market,” Smith said.

Blockchain is positioned as a single solution that supports the functionality of the cryptocurrencywallet and related products. Smith explained that his company intends to attract institutional investors, primarily from the US, developing specialized services.

“A lot of attention is paid to the withdrawal of new products on the American market,” he said. “But this is a very long cycle.”

According to Smith, the market of cryptocurrency is experiencing a huge institutional interest. “There is a lot of talk about this market at the institutional level, but we will not be able to see the whole effect of this phenomenon until the middle of 2019,” Blockchain CEO added.

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