Galaxy Digital Tells Trading Clients Crypto Markets Could Gain Momentum After 5th Rebound Day In Row
Galaxy Digital Tells Clients That Cryptocurrency Markets Could Gain Momentum
In 2018, cryptocurrencies have been affected by a very hard bear market. Bitcoin (BTC) and other virtual currencies lost more than 80% of their value. Some of the companies operating in the space had to shut down their operations.
However, Galaxy Digital seems positive about the rebound that the market has recently experienced. Bitcoin reached $3,250 a few days ago, but it is now trading above $4,050. Mike Novogratz’s Galaxy Digital told clients that crypto markets could continue to grow in the future.
The bank sent a note to customers in which he mentions that the current rebound ‘has more legs’ than what people think.
On the matter, the bank wrote:
“Short rallies are exactly what happens before a real rally ensues. This could set up a more sustained ‘Buy the Dip’ markets as we look to the upcoming institutional launches to give this legs.”
There are many different catalysts that would help the market grow again in the near future. The first one is related to Fidelity Investment and the International Exchange (ICE) releasing institutional-grade trading platforms. The second one is the possibility to see a Bitcoin ETF approval during the next year.
Fidelity announced that they are launching trading services specifically designed for institutional investors. Additionally, the ICE released Bakkt, a platform that will also offer trading and custody services to mainstream and institutional clients.
Although there is a possibility that a Bitcoin ETF would not be approved by the U.S. Securities and Exchange Commission (SEC) in February, other proposals could be improved and approved during the year.
The founder of Galaxy Digital, Michael Novogratz, has always been very optimistic about the future of the space. He has also mentioned that Bitcoin is close to a bottom and that he does not expect the price to fall much further.
At the moment, Bitcoin is being traded close to $4,050 and it has a market cap of $70 billion.