Markets
Institutional money influx set to change bitcoin markets, analyst says
Cryptocurrency markets are undergoing a paradigm shift, driven by the growing involvement of institutional investors. In a recent discussion, Roundtable host Rob Nelson, Market Rebellion’s Jon Najarian, and Parlay Labs’ Alex Mascioli and founder of Trade The Chain delved into how these shifts are shaping the future of cryptocurrencies like bitcoin and ethereum.
Nelson kicked off the conversation by highlighting the growing maturity of the cryptocurrency market. He emphasized the stabilizing effect of institutional investment, predicting that their involvement would limit sharp declines. “There’s a maturity that’s happening in the space,” Nelson said, noting that institutional players are buying more and will eventually sell to retail investors, leading to greater demand and stability.
Market Rebellion’s Najarian agreed, saying the influx of institutional money is changing the market. He noted that the ease of entry into cryptocurrencies, particularly through spot bitcoin exchange-traded funds (ETFs), is attracting previously hesitant investors. “Do I expect bitcoin to go below $50,000? No, not really. I would be quite comfortable with a $45,000 dip, not a target, but a firm support level,” Najarian said. He attributed that confidence to the broader public participation enabled by ETFs, which make digital assets more accessible.
The discussion then turned to the peculiar behavior of cryptocurrency investors, especially so-called “hodlers” who hold onto their assets during market fluctuations. Nelson suggested that as more retail investors enter the market, there could be a more natural buying and selling process, similar to other markets.
Parlay Labs’ Mascioli sounded a cautious note, drawing parallels to his experience with Blackberry stock. He emphasized the unpredictable nature of markets, noting that even solid companies can experience unexpected downturns.
Najarian mentioned a significant pullback of ethereum from the Coinbase platform. He clarified that it was a pullback, not a selloff, and speculated that the holder may be positioning themselves for future gains. “Sometimes when you see things like that, it’s because people are looking ahead to potential price gains and want to be ready for that,” Najarian explained.