Brace For Impact: Wall Street Is Headed Straight For Bitcoin, Says Analyst
October 26 2021 - 12:00PM
NEWSBTC
Wall Street has previously not been at the forefront of bitcoin
trading in the past. However, that looks poised to change. The
approvals of three bitcoin ETFs in the past week have brought about
more institutional interest in the digital asset and Wall Street
brokers are starting to turn their attention to the cryptocurrency.
The first Bitcoin ETF recorded trading volumes of over $1 billion
on its first day. This success has not missed the radar of Wall
Street. Analyst Christopher Brendler sat down with Coindesk to talk
about the future of bitcoin in Wall Street. According to Brendler,
Wall Street brokers are getting increasingly positive about BTC
investments. It is important to note that bitcoin has outperformed
both the Nasdaq and the S&P year-over-year, as seen in a report
from Wealthier Today. Interested In Bitcoin And Mining Brendler had
previously collated data on how the bitcoin mining industry was
being viewed by players in Wall Street. He found that brokers had a
positive view of the industry in the short term. Brendler estimated
that about 15% of Wall Street brokers from the payments side of
things were beginning to take investments in the cryptocurrency
more seriously. This number at been at a meager 5% of Wall Street
brokers at the beginning of the year. Related Reading
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Promote Adoption Interest has mostly grown due to the growth of
bitcoin in the past year. The asset whose price had been below
$30,000 at the beginning of the year had grown over 100% to a new
all-time high in October. BTC price suffers beatdown from $63K |
Source: BTCUSD on TradingView.com The asset itself has not been the
only one to record tremendous growth in recent months. Mining
stocks have also benefitted from the market rally. The report
stated that mining stocks Marathon Digital and Riot Blockchain have
seen growth up to 1,500% and 600% respectively in the past year,
considerably higher than the 377% of BTC in the last year.
Institutional Investors Are Pouring In Institutional investors have
continued to pitch their tent with bitcoin. This has translated
into more interest in the market from Wall Street brokers. Bendler
noted some skepticism from these investors. However, they still
remained bullish on the digital asset in the long term. “While most
investors are still new to this area, there was also quite a few
already involved and able to dig deep into our new coverage,” said
Bendler. Related Reading | Analyst Puts Bitcoin Bottom At
$50,000, Here’s Why As interest from Wall Street grows, it is
expected that we will see more inflows in bitcoin. The money coming
in will help to drive the price of bitcoin both in the short and
the long term. Bendler explained that the investors familiar with
the market were bullish crypto miners. Although they erred on the
side of caution when it came to valuation in the space. This has,
however, not caused them to shy away from the space. With returns
from the crypto market beating out traditional investment vehicles,
it is only a matter of time before Wall Street is fully invested in
the market. Featured image from Ethereum World News, chart from
TradingView.com
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