Bitcoin may have failed to escape its bear market yet; however, a JP Morgan analyst is claiming that a possible comeback could be ahead.
On December 15, Nikolaos Panigirtzoglou made a bearish statement saying that financial institutions were losing interest in Bitcoin trading.
However, recently while talking on the CNBC’ “Futures Now” show, he said that this situation is most likely temporary.
Stability Is an Important Factor
Panigirtzoglou said that firms will renew their interest in the digital currencies market if they find more stability in the sector.
“The stability that we are seeing right now in the cryptocurrency market is setting the stage for more participation by institutional investors in the future,” he said, noting that the young crypto market was in a bubble phase that burst.
He thinks that financial firms will start looking at the sector again because of the importance of its underlying technology- blockchain.
But This Could Be Years Away
Even though Panigirtzoglou has changed his views on crypto, he still believes that the comeback could be years away.
He noted that the biggest obstacle for the industry right now is regulation, highlighting that regulatory oversight could be a “bit slow to realize.”
Bitcoin’s price decline has taken the coin from $20,000 to about $3,100, with its price consolidating in the $3000-$4000 range recently.
Interestingly, Bakkt and Fidelity are yet to enter the market while the first Bitcoin ETF is also waiting to happen.