Last month Bitcon entrepreneur Trace Mayer noted that a mountain of money is waiting to move into cryptocurrency markets in coming months. It’s a sentiment shared by other top players in the industry and now American Express-backed Abra CEO Bill Barhydt is giving some more clues as to what investors can expect going forward.
In an interview with Business Insider Barhydt said that while cryptocurrency market caps have collapsed in excess of 50% over the last several months, there will be a resurgence of investment capital before the end of 2018.
I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity. Once that happens, all hell will break loose.
Once the floodgates are opened, they’re opened
And the water is definitely massing at the top of the dam, according to Barhydt, who suggests that major financial players haven’t yet begun to shift mass amounts of capital into the sector.
Up until now it has been retail investors and some institutional players in Japan and South Korea who have been responsible for investment flows. With the United States now looking to regulate many digital assets as securities, including the exchanges that offer them for sale, once a level of trust under the rule of law is established in the West, we could see significant flows of capital shift into Bitcoin, Ethereum, Bitcoin Cash, Litecoin and other digital currencies:
There really is zero large-scale institutional money from the west in crypto right now… That is happening in Japan. Once a sizable chunk of Western institutional money starts to come in – watch out.
Institutional interest is now starting to grow regardless of the Google trends.
To say such a move could be epic is an understatement.
Cryptocurrency market caps reached an all-time high in excess of $800 billion late last year. Though currently sitting at a cap of $300 billion after what cryptocurrency experts call a “correction,” the previous bull run showed that when interest peaks, it is massive.
With well over 100 million retail investors sitting on the sidelines and institutional investors remaining cautious until the fraudulent aspects of the sector are cleared out, it should be clear that Bitcoin and other cryptocurrencies could once again see explosive growth in coming months and years.