Nikolaos Panigirtzoglou, JPMorgan’s global market strategist, recently said that the institutional interest in Bitcoin and other cryptocurrency assets has dried up and even turned negative due to the latest market correction.
In an interview with CNBC, Panigirtzoglou highlighted a gradual decline in crypto institutional inflows since April 2021. The strategist of JPMorgan added that the volatility of Bitcoin will normalize in the coming weeks.
The price of Bitcoin has stabilized since the start of this week. As of writing, the world’s most valuable digital currency is trading near $35,000 with a market cap of more than $650 billion. BTC touched an all-time high of $64,000 in April but saw a major correction due to a dip in institutional interest and China’s crypto mining crackdown.
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“Institutional interest in Bitcoin and other cryptocurrencies has dried up and even turned negative in May 2021. It’s probably close to flat at the moment. The most important thing to notice is that institutional interest started slowing down in April 2021, before the May correction. We started seeing flows from Bitcoin products to physical gold ETFs which means that some of the institutional investors started pulling money out of the Bitcoin market in April 2021,” Panigirtzoglou said.
Bitcoin Volatility and other Cryptocurrencies
Commenting about the recent volatility in Bitcoin and other cryptocurrencies, Panigirtzoglou said that the volatility of BTC will stabilize in the near future. “There has been a divergence between BTC and other cryptocurrency assets. Back in April, money started flowing out of the BTC products and a part of that investment went into Ethereum funds. But, now we are seeing the opposite, the flow into Ethereum funds has slowed over the past few weeks, at the same time, flow into Bitcoin funds has improved,” he added.
BTC’s crypto market dominance has jumped substantially in the last few weeks. Bitcoin now accounts for over 46% of the total crypto market cap.