• Galaxy Digital CEO Mike Novogratz has described the crypto markets as “lackadaisical” due to a lack of institutional interest in buying.
• CoinShares’ head of research reported that institutional buying of digital assets saw outflows totaling $39 million last week.
• Novogratz pointed to WeChat offering Bitcoin price quotes and Hong Kong allowing retail customers to trade crypto on regulated exchanges, which could lead to increased adoption in Asia.
Crypto Markets Lack Enthusiasm as Institutional Buying Slows
The Galaxy Digital CEO, Mike Novogratz has recently expressed his opinion that the cryptocurrency market is currently lacking enthusiasm due to a decrease in institutional investors buying into the market. According to an article published by CNBC, Novogratz claims that while there is still some stability provided by small-scale retail buyers, it is not enough to maintain any real bullish momentum.
Outflows from Institutional Investors
CoinShares’ head of research James Butterfill reported that institutional buying of digital assets saw outflows totaling $39 million as of last week; this marks the sixth consecutive week of outflows for such investments. This news follows a previous report from Butterfill detailing an overall dip in institutional investor activity over the past few weeks.
WeChat Offers Bitcoin Price Quotes
Novogratz points towards two significant developments in Asia which could help shift the tides of decreased investor activity: firstly, Chinese social media app WeChat now offers Bitcoin (BTC) price quotes on its app – something he considers to be a significant milestone given its popularity with 1.3 billion monthly active users according to data from Statista.
Hong Kong Allows Retail Crypto Trading on Regulated Exchanges
The second development was seen in Hong Kong where they have officially begun allowing retail customers to trade crypto on regulated exchanges for the first time – indicating increasing adoption levels throughout Asia. This news has been echoed by Tommy Honan, head of product strategy at Australian crypto exchange Swyftx who stated that activity levels among institutional investors are more muted but also mentioned how retail investors are being hit financially as well due to cost pressures.
Conclusion
Overall, though there are some positive developments taking place throughout Asia regarding cryptocurrency adoption and usage, there seems to be a general lack of enthusiasm within the broader market due mainly to decreased institutional investor interest causing outflows and deflated investor sentiment over the past few weeks