The CEO of Galaxy Digital, Mike Novogratz, has described the cryptocurrency market in general as “blasé” – or lacking in enthusiasm – mainly due to institutional investors fleeing cryptocurrency.
In a interview granted on June 1 to CNBC, Novogratz said that while relatively small retail buyers add some stability to the market with their modest holdings, the lack of large-scale buyers is becoming a concern.
“There is constant bidding from retailers. We are seeing it across all platforms. There just isn’t a lot of institutional enthusiasm right now.”
The affirmations are they echo from a May 31 report by CoinShares head of research James Butterfill detailing that institutional purchases of digital assets saw outflows totaling $39 million last week, the sixth consecutive week of outflows.
However, Novogratz has pointed to two significant developments in Asia that may help turn the tide.
First of all, he pointed out that the Chinese application WeChat now offers bitcoin price quotes (BTC) into his app, something he considers a significant milestone given its popularity. As of this writing, WeChat boasts 1.3 billion monthly active users, according to data from Statista.
Wechat is available for #Bitcoin search and only Bitcoin. A small but big step of China/HK embracing crypto pic.twitter.com/DHq4uqnq5C
— Qinwen Wang (@Qinwen_Wang) June 1, 2023
Wechat is available to search bitcoin and bitcoin only. A small big step for China/Hong Kong when it comes to cryptocurrency adoption.
In second place, Novogratz set his sights on Hong Kong, which has already officially begun allowing retail clients to trade cryptocurrency on regulated exchanges for the first time, an indication of growing Asian adoption.
In an interview with Cointelegraph, Tommy Honan, head of product strategy at Australian cryptocurrency exchange Swyftx, agreed that the crypto market has “shut down” over the past month.
“Activity levels among institutional investors are muted. But it’s not just institutions: retail investors have been hit by cost-of-living pressures,” he said.
As cryptocurrency companies struggle to deal with an increasingly precarious regulatory landscape in the United States, Honan continues to expect a strong price recovery as the big companies decide to re-enter.
“Institutions will come back into the market, and when they do, they’ll come back with a bang. But I don’t expect that to happen in the US until one of two things happens,” he says.
“Either sensible cryptocurrency rules are established. Or the Republicans need to win next year’s US election. Almost overnight, cryptocurrency has become an insanely partisan issue, which is exactly what the industry neither wanted nor needed.”
Like NovogratzHonan says that Hong Kong presents a unique opportunity for the cryptocurrency market, as it allows a new wave of investors to enter the market and offers US-based companies a place to establish themselves in case of a crisis. be necessary.
Chinese Central Television station has just broadcast news regarding Hong Kong letting people buy Bitcoin, Ethereum, and other coins.
This is huge news! China is waking up to crypto again.
What is happening in Hong Kong is only possible with approval from Beijing. Get ready! pic.twitter.com/Zxdi7UZNHK
—Lark Davis (@TheCryptoLark) May 24, 2023
China Central Television has just broadcast the news that Hong Kong allows you to buy bitcoin, Ethereum and other currencies. It’s great news. China is embracing cryptocurrencies again. What is happening in Hong Kong is only possible with the approval of Beijing. Get ready!
“We are watching developments in Hong Kong very closely. If Hong Kong is being used by mainland China as a testing ground for secure cryptocurrency adoption, it would be significant for the market,” Honan said.. “We’ve all been looking in the West for the next bullish trigger. Maybe we should have been looking East.”
Now that Hong Kong has opened up for cryptocurrency-related businesses, a growing number of companies are fighting for a license.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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