According to Goldman Sach’s Jeff Currie, Bitcoin (BTC) is showing signs of maturity despite the volatility it is experiencing. However, funds streaming in from the institutional investors are still minor in comparison to BTC’s gains accrued in the current bullish cycle and Bitcoin needs more money from institutions to stabilize.
His comments come after Bitcoin and other cryptocurrencies suffered a significant selloff on Monday, where more than $200 billion was wiped off the market value in less than 24 hours. Currie said: “I think the market is beginning to become more mature. I think in any nascent market, you get that volatility and those risks that are associated with it.”
“The key to creating some type of stability in the market is to see an increase in the participation of institutional investors, and right now they’re small… roughly 1% of it (the $600 billion invested in BTC at the moment) is institutional money.”
Bitcoin’s value has also increased massively over the last few months topping out at an all-time high close to $42,000. The pioneer cryptocurrency is now trading at $34,550 and is still up 17% since the beginning of the year. Ethereum, the leading altcoin, is trading at $1,045 and is up 42% from the start of the year.
Bitcoin’s store of value narrative gains traction
Investors are starting to relate to Bitcoin as a store of value all around the world, just like gold. The pandemic being battled across the world has seen governments take drastic measures to cushion economies from tumbling. The devaluation of fiat money is worrisome to many investors looking for alternative investments such as Bitcoin and other digital assets.
Renowned investors including Paul Tudor Jones and Stanley Druckenmiller have recently backed Bitcoin. At the same time, fund managers have also started to allocate a portion of their portfolios to cryptos, perhaps to take advantage of the spike in prices.
Large investment banks such as JP Morgan are giving Bitcoin a lot more attention than before. Strategists at the bank recently predicted that Bitcoin could hit $146,000. However, they caution that Bitcoin must stabilize and reduce the volatility to hit this price level.
The volatility in the Bitcoin market is making it difficult to predict the price. Meanwhile, bulls have their attention channeled to holding the price above $33,000. Losses toward $30,000 are likely to come into the picture; especially now BTC is trading below the 50 Simple Moving Average on the 4-hour chart.’
A break below the 100 SMA would call for more buy orders, thus rising the overhead pressure. Support at $30,000 was recently confirmed, but if push comes to shove, Bitcoin may stretch to the primary support at $27,500.