There has lately been a lack of interest among institutional investors in buying cryptocurrencies, which has dampened overall enthusiasm. Galaxy Digital Mike Novogratz told CNBC.
«There are buy orders from retail investors. […] There isn’t much institutional hype right now» — the expert explained.
According to Novogratz, the situation could be changed if the popular Chinese app WeChat added an option to view Bitcoin quotes.
Secondly, he named expansion of regulated platforms in Hong Kong trading digital assets for retail investors. The Galaxy Digital CEO saw this as a sign of growing popularity of cryptocurrencies in the region.
Tommy Honan, Swyftx’s head of product strategy, in an interview with Cointelegraph agreed with Novogratz’s arguments about the impact of institutional investors.
«The level of activity is definitely more subdued. But this concerns not only institutions; retail investors have suffered from a spike in the cost of living» — Honan noted.
The expert expects the market to recover as large companies return.
«Institutions will return to the market, and when they do, they will have a hard time. This hasn’t happened in the United States yet. […] Clear and reasonable rules for digital assets are needed, or a Republican victory in next year’s elections» — Honan explained.
The expert agreed with Novogratz on the opportunities that Hong Kong opens up for the crypto market.
Earlier, documents to operate as a regulated Bitcoin exchange in Hong Kong were filed by OSL, Huobi, OKX and BitMEX.
In January, Hong Kong’s Financial Secretary Paul Chan said the jurisdiction was ready to welcome cryptocurrency companies from around the world.