The role of institutional investors in the cryptocurrency world

The Influence of Institutional Investors on the Cryptocurrency Market

The CEO of a large investment company described the current state of the cryptocurrency market as "apathetic". In his opinion, this is due to a lack of interest from institutional investors.

Although there is some demand from retail investors in the market, the lack of large buyers creates problems. Data from the analytical firm confirms this trend - there has been an outflow of funds from cryptocurrency funds for six consecutive weeks.

Potential factors for changing the situation

However, the situation may change thanks to two important events in Asia. First, the popular Chinese social network WeChat with 1.3 billion users has started indexing quotes of bitcoin. Second, new rules have been introduced in Hong Kong since June 1, granting retail investors access to regulated crypto trading. Some experts believe that through Hong Kong, mainland China may gain access to cryptocurrencies.

Opinion of the CEO of the Australian Exchange

The head of a major Australian exchange agrees with the opinion that the cryptocurrency market has "run out of steam." He notes a decrease in activity from both institutional and retail investors due to economic pressure.

However, he expects a market revival and price recovery when major companies decide to return. He considers Hong Kong particularly promising, as it may attract a new wave of investors and provide American firms with the opportunity to enter the Asian market.

Prospects of the Cryptocurrency Market in Asia

According to experts, if mainland China uses Hong Kong as a platform for the safe integration of cryptocurrencies, it could become a powerful stimulus for the entire market.

Some analysts believe that the next bull trend in the cryptocurrency market may start from the East, rather than from the West as previously expected.