With so much turbulence happening in the US banking sector, Ark Invest Chief Executive Officer (CEO) Cathie Wood told news outlet Bloomberg that she believes many institutional investors would still be attracted to the crypto industry. Her prediction came from the fact that the leading digital cryptocurrency Bitcoin (BTC) has not followed the plummeting trend of the equity market but has instead continued to rally.
“The fact that Bitcoin moved in a very different way from the equity markets, in particular, was quite instructive,” the Ark Invest CEO added.
At the time of this writing, BTC price was around $28,160.30, according to Coinmarketcap. Interestingly, at this rate, the coin could be heading toward a new nine-month high.
Institutional Investors Camped Around Bitcoin (BTC) Rally
It is noteworthy, however, that the excitement around the Bitcoin rally began even before the banking crises in the U.S.
In January, Matrixport, a Singapore-based crypto investment and lending firm published a research report which indicated that institutional investors were the highest investors in BTC since it began to recover. Institutional investors were responsible for up to 85% purchases of bitcoin and the market price was only $23,000 at the time.
Also, Markus Thielen, the head of research and strategy at Matrixport said “This could set up the crypto market for a mid-month rally, every month and turn into a trend where we see a strong rally from mid-month onwards with some consolidation towards the end of the month as traders take profit and miners sell calls.”
Oliver Linch, the CEO of US-based blockchain digital asset trading platform Bittrex confirmed that the heightened institutional investors’ interest in BTC is already present. In his interview with The Wolf Of All Streets podcast, Linch explained that institutional investors already flooded their portfolios with crypto before the crisis started with Silvergate Bank, Signature Bank, and Silicon Valley Bank.
“The big talking point of this bear market is institutional interest in crypto. Every big bank now has a substantive crypto desk, not just for trading, but for partnerships as well.”
Additionally, Bittrex CEO advised that the traditional financial sector and the nascent crypto industry should cease the tug of war for superiority between them.
