Institutional investors are not interested in altcoins; why?
The year 2020 has been the gateway for institutions into the cryptomoney market, mainly thanks to Bitcoin.
In this article, we look at the reasons why institutions and Wall Street leaders would choose Bitcoin over other options.
However, a new emerging focal point suggests an institutional push towards altcoins.
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The dream of the speculative explosion of 2017 became reality 3 years later: intentional investors, mainly through capital funds from Wall Street, now include Bitcoin in their portfolios. But it’s not just Bitcoin Lifestyle investors; macro companies are also joining the party, adding BTCs to their cash flow. So what about the altcoins within this trend that seems to give the only preference to Bitcoin?
At Berkshire Hathaway’s 2018 annual gathering, its director Warren Buffett called Bitcoin „rat poison“. He similarly assured that the cryptomoney (which he clearly included altcoins) would „end badly“.
The words of Mr. Buffet, considered by many to be the best investor of all time, have remained the general opinion of the institutions in the face of the crypto market „bubble“ of late 2017/early 2018.
The entire crypto market has gone through difficult times. The year 2018, during which the majority of digital assets fell to their lowest price on the date, or floor, was nicknamed by many as the „crypto winter“.
At the time, one of the few glimmers of light coming from the institutions came from Thomas Lee, the manager of Fundstrat, a firm providing investment advice to prestigious institutions.
That said, Mr. Lee’s optimistic statements focused mainly on Bitcoin, and sometimes on Ethereum. Other cryptomoney companies, mentioned as „altcoins“, were generally left out.
Bitcoin’s course has evolved positively. The opinions of Wall Street’s „investment experts“ have changed radically in recent times, as the famous „bubble“ has turned into a better store of value than gold.
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For example, JPMorgan Bank Director Jamie Dimon called Bitcoin a „scam“ in 2017. To illustrate his point, he said he would fire any „stupid“ employee who would engage in Bitcoin trading.
It took JPMorgan analysts three years to praise Bitcoin’s performance over traditional assets. Analysts at the investment fund also assured that the BTC could dethrone gold, and that its price could reach $146,000 in the long term. In fact, the Wall Street bank is now on the verge of launching its own cryptomyny, the JPM Coin.