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Genesis Trading: “institutionalization of bitcoin makes it less attractive”

OTC market analysts Genesis Trading believe that further institutionalization of Bitcoin will make it less attractive to retail traders.

In the report for the third quarter of 2021, analysts note that the demand for bitcoin has decreased, as it became more difficult for traders to make a profit due to the imbalance in the market – institutional and high-frequency traders smooth out the “irregularities” in the rates.

“The trend stopped in the second quarter of this year, but resumed in the third quarter. Opportunities to make money on the difference in bitcoin prices between the derivatives and futures markets have significantly decreased, ”the analysts write.

At the same time, representatives of the traditional financial sector have shown significant interest in Bitcoin futures ETFs. Genesis has been approached by international investment banks as well as hundreds of billions of dollars in assets as a liquidity provider.

Institutional investors are showing increasing interest in the DeFi space. To meet this demand, Genesis has launched several new options for various cryptocurrencies like Solana and Luna, as well as the DYDX token. The total trading volume on the Genesis site was $ 37 billion in the third quarter of this year.

Recently, JPMorgan analysts said that while there is a good chance of Bitcoin going up next year, buying this asset at current prices does not look very attractive.

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