Spencer Bogart Says Cryptocurrency Market Trajectory is Very Obvious
Yes. According to Spencer Bogart, one of the partners in cryptocurrency giant Blockchain Capital, the trajectory couldn’t be clearer. He was responding to a statement by Joseph Lubin who said that different trader types were driving the volatility in the market. Lubin is one of the co-founders of Ethereum.
Bogart noted that more developers were getting into the cryptocurrency space while traditional financial institutions such as Goldman Sachs were drumming up support for blockchain technology. There’s a lot of speculation regarding the entrance of institutional investors into the cryptocurrency market.
Occurrence of Market Cycles
It’s clear that there are still large financial influencers out there who are yet to venture into cryptocurrency. The lack of a reliable custodian is the reason behind this caution by institutional investors. As a result, the market is going through various cycles where sudden peaks and dips are the order of the day.
Vigorous market cycles are common in a retail dominated market. Bogart noted further that the cryptocurrency market is one of the unique ones since retailers are the ones who made the first move. That’s not common in the financial landscape; hence the extreme market cycles being experienced by cryptocurrencies.
More so, Bogart stated that retail investors are quite different from their institutional counterparts. For the retailers, when the market goes high, they ride along it and when it drops, they go low as well. Such behavior has contributed greatly to the volatility being witnessed by the market currently.
Hunter Horsley , the boss at Bitwise Asset Management, agreed with the sentiments of Brian Armstrong that it would take time for mass adoption of cyptocurrencies. He added that it might take five, ten or even more time for this to happen. No one knows for sure but the debate is very relevant to the world.
Horsley made a comparison of the current state of cryptocurrency to the period when internet was being developed. It took time for various applications to come into place just as it’s happening with crypto assets. People took a lengthy period to adopt and accept open financial systems enabled by the internet. He concludes by saying that it’s a matter of time before crypto becomes a mainstream financial asset.