Institutional investors continue to enter the Bitcoin market, leading Whale Panda to diminish the importance of altcoins.
The flow of capital from institutional investors continues to enter the crypto market. However, the vast majority of this money goes directly to Crypto Code, marginalizing the other crypt currencies in the ecosystem. For this reason, the analyst known on Twitter as WhalePanda, comments in today’s Tweet that institutional investors are betting on Bitcoin and not the alts:
Bitcoin dropped to USD 13,000
Institutional investors love Bitcoin
For a long time, it was believed in the world of crypto-currency that institutional investors did not enter the crypto-currency market due to lack of financial products for them. Therefore, companies like Bakkt concentrated all their efforts on creating products such as physical future contracts on Bitcoin. With which they hoped to attract these large investment firms.
However, the company that really hit the nail on the head to attract institutional investors was Grayscale. A company dedicated to saving investors the hassle of buying and storing crypto currencies like Bitcoin and Ethereum. They did this job by serving as an intermediary between investment firms and the crypto market in exchange for a commission.
Institutional investors bet on Bitcoin by increasing its price. Source: CoindeskInstitutional investors bet on Bitcoin by increasing its price.
This has opened the door to the entry of hundreds of millions of dollars into the world of cryptomonies. With institutional investors entering the Bitcoin market en masse. In what analysts such as Whale Panda, known on Twitter, is a clear sign of Bitcoin’s superiority over other cryptosystems. For, although Grayscale offers opportunities to invest in altcoins, these are not as popular as BTC:
„We’re seeing a lot of institutional investors coming into this space and all they care about is #Bitcoin. For an alt season you need retail „investors“ (gamblers) looking for „the next Bitcoin“. These people will come only when Bitcoin reaches a new record price.
Thus, Whale Panda would diminish the importance of altcoins for the crypto world. Saying that only those who gamble instead of investing in the crypto market, would be interested in acquiring these crypto currencies. Thus continuing the ongoing dispute between the defenders of Bitcoin, and those who believe in a world with a diversity of cryptosystems.