Matthew McDermott, in an interview with Reuters, shared his opinion that the Bitcoin market is subject to multipolar influence. It follows from this that it would be wrong to consider any specific reason as the only explanation for the MTC price swings.
“Bitcoin price movements continue to be driven by the influence of retailers. But we started to see investment appetites changing and institutional clients started getting involved,” McDermott said.
The expert noted that “no one knows exactly what exactly influences the latest achievements of Bitcoin.” Although many analysts confidently point to the billions of dollars of liquidity that has been poured into spot bitcoin exchange-traded funds in the United States.
According to McDermott, the launch of Bitcoin ETFs this year has largely caused a “psychological shift”, and as such we have seen changes not only in terms of different types of clients, but also in terms of investment volumes.
McDermott noted that despite the “promise of potential profits,” Bitcoin still has limited use in the real world. However, he sees the blockchain technology underlying cryptocurrencies as promising, and that over time, more classes of traditional financial assets will be tokenized and traded using it.
Let us remind you that the capitalization of the cryptocurrency market decreased by more than $400 billion over the week.
Source: Bits
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