Bitcoin Bounds Toward $6,000 as More Institutions Embrace Tokens
Comment of the Day

May 07 2019

Commentary by Eoin Treacy

Bitcoin Bounds Toward $6,000 as More Institutions Embrace Tokens

This article by Todd White and Eric Lam for Bloomberg may be of interest to subscribers. Here is a section:

Fidelity Investments, which began a custody service to store Bitcoin earlier this year, plans to buy and sell it for institutional customers within a few weeks, according to a person familiar with the matter.

“Fidelity alone doesn’t move the entire needle, but Fidelity with E*Trade and Ameritrade and Robin Hood and a whole host,” said Chu, whose firm is a blockchain investment and advisory company. “You’re seeing a critical mass of these types of asset managers and brokers providing retail exposure and retail access to crypto.”

Some investors who expect Bitcoin to break above $6,000 see it quickly finding a new resistance level. The token will likely find fresh headwinds in the $6,000-$6,500 range, said Charlie Morris, a fund manager and founder of cryptocurrency price discovery site ByteTree.com in London.

“It would be unsurprising if that former support became resistance -- something that is quite normal in markets,” Morris said.

Eoin Treacy's view

Cryptocurrencies started off as a purely retail investment. The anticipation of institutional involvement contributed to the mania in 2017 but the introduction of futures was an anti-climax. In fact many of the biggest holders used the futures to hedge their long exposure and contributed to the 1987 style crash. However, even though there were some hedge funds active in the space the majority of institutional investors were precluded from participating because of custody issues.

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