Bridgewater analyst claims, Bitcoin needs specific regulations to be less volatile,

Spread the love

When regulatory clarity is in place, Bitcoin will become more robust and liquid, concluded Bridgewater’s director of investment research.

A senior analyst at Bridgewater, an asset management company, claims that regulation could probably make Bitcoin (BTC) a good institutional investor asset.

Rebecca Patterson, director of investment research at Bridgewater, argued that regulatory stability around Bitcoin would solve some of the main cryptocurrency concerns associated with high volatility and low liquidity.

In a Feb. 24 interview with Bloomberg, Patterson said that issues like volatility and liquidity remain the main hurdles for Bridgewater’s potential move into Bitcoin.

Bitcoin will jump 10 percent right now on a tweet, which for most institutional investors is not necessarily a store of money. So the volatility of Bitcoin is about 10 times the volatility of the currency, twice the volatility of the Venezuelan bolivar,’ said the executive.

Patterson went on to claim that if Bitcoin becomes a better-regulated commodity, both the problem of volatility and liquidity problems would subside:

“The more you get a real regulatory ecosystem developing around Bitcoin and other currencies, the more other types of investors are going to be comfortable coming in, that’s going to bring liquidity, that’s going to reduce the volatility.”

“So I guess if there was one thing I were watching first, it would be seeing more regulatory certainty,” Patterson said, adding, “I’m not sure when that’s going to come in the U.S.”

RECOMMENDED READ:  Bitcoin Gets Closer To $10,000 – Analysts Consider Hedge Funds Could Start Buying Hedging Assets

Patterson also said that she sees Bitcoin not as a “alternative currency,” but as digital gold instead. If anything, it is an alternative to digital gold or gold. That would, I guess, be a better contrast,’ she said. Patterson said several investors have been looking to Bitcoin over inflation fears caused by the printing of central bank money. However, Bitcoin also needs to prove its position as digital gold for Bridgewater:

“As institutional investors, we don’t know yet if it’s going to be digital gold, it may be over time, but I don’t think we can say that with confidence yet. And that affects whether or not our client should own it.”

 408 Interactions,  4 today

Romanian university intends to consider cryptocurrency payments for admissions fees.

The academic college, which has about 11,000 students, stated that the inclusion of crypto payments was part of a campaign Read more

Fidelity’s Tom Jessop on why Crypto has reached a “tipping point.”

The crypto market has gained traction as a result of low interest rates and fiscal stimulus, according to a Fidelity Read more

How arrests for attempting to obtain a hitman and a nuclear bomb demonstrate that the dark web is not always anonymous.

Paying with cryptocurrency does not guarantee your safety. Most of the criticisms levelled at cryptocurrencies is that its difficult-to-trace existence Read more

Bitcoin, BTT, Dogecoin Price Movement Analysis for 7th April, 2021

Bitcoin was expected to remain above the $55,800-support, a level that coincided with its 200-SMA. BitTorrent Token was projected to Read more

The cryptocurrency market cap has surpassed $2 trillion, making it as valuable as Apple.

For the first time, the total market value of all cryptocurrencies exceeds $2 trillion. According to Goingecko numbers, the total Read more

Binance Coin, Dogecoin, SushiSwap Price Movement Analysis for 4th April, 2021

Binance Coin predicted that fresher record thresholds will be set in the coming days due to solid technicals. Following a Read more

Tron Price Movement Analysis for 4th April, 2021

In the cryptocurrency industry, excessive uncertainty has had a long-term effect on the price of the digital commodity. This uncertainty Read more

Ethereum Price Movement Analysis for 4th April, 2021

Ethereum, the second-largest cryptocurrency, has entered a volatile zone, which could drive the digital asset's price even higher. In the Read more

Chainlink, DigiByte, Enjin Coin Price Movement Analysis for 4th April, 2021

Bitcoin faced some selling pressure just above the $59k mark, leading it to slip to $56,600. The majority of the Read more

Bitcoin fell by more than 4%, causing many other cryptocurrencies to plummet drastically.

The world's most expensive cryptocurrency fell 4.1 percent, bringing several other coins down with it, sending the economy into the Read more

Leave a Reply

Contact Us