Bitcoin Investors on the Sidelines: Banks Show Little Desire to Participate
Bitcoin and its other cryptocurrencies have seen trading volumes fall to five year lows this month
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- Written by Banking Exchange staff
Bitcoin and its other cryptocurrencies have seen trading volumes fall to five year lows this month as investors stay on the sidelines with little signs of rebounding. Bitcoin trading volume is down more than 90% from its high earlier this year. While higher end investors are holding, the market is being described as a bear market for the currency as retail investors have left in large volumes.
Industry experts sight regulatory restrictions as one of the key reasons for low volume this summer. Banking stability also had a negative impact on the Bitcoin.
Ironically, the actual price of bitcoin is relatively strong staying about $25,000, and increase of over 50% in 2023. Long term investors have not been scared out of the market. Participants simply are not as interested in trading, which may not hurt valuations but is devastating to crypto businesses reliant on trading volume and news that would move markets.
Bitcoin had a large sell off on August 17, but has stayed relatively unchanged with low volume over the last ten days. One analyst has called the present market “dull”, not a word has typically described the crypto world. Perhaps dull may not be the best thing for businesses depending on trading volume, but if the price for Bitcoin holds and even grows steadily it may show maturity in the long run.
Cantor Fitzgerald analyst Josh Siegler commented, “Although near-term catalysts may take many forms, we continue to believe in the long-term story of ongoing crypto adoption and bitcoin’s staying power as an alternative asset and store of value.”
Most banks will stay on the sidelines until a clearer picture develops.
Tagged under Technology, Blockchain, Bitcoin, Cryptocurrency, Feature, Feature3,
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