[2018-09-01] Wall Street Firms are Making Bitcoin more Stable

[moriskarlov]

2018 has witnessed a drop-off in price variations on digital asset exchanges.

That trend is tied to the entrance of large Wall Street firms into the market, which makes it more stable, according to cryptocurrency trading technology firm SFOX.

Many crypto enthusiast long for a day when bitcoin will replace the entire financial system. But in the meantime, Wall Street might actually be helping the digital asset's long term adoption, one firm says.

New data from SFOX, the cryptocurrency trading technology firm, shows that 2018 has witnessed a drop-off in price variations on digital asset exchanges. The firm argues that trend is tied to the entrance of large Wall Street firms into the market, which makes it more stable.

"Before institutional firms were actively trading crypto or heavily involved (before 2018) bitcoin price differences between exchanges varied as high as 4.5%," said Danny Kim, head of growth at SFOX. Now price differences are no more than one tenth of one percent, according to SFOX.

That stability is crucial as if there's less price fluctuation, then more merchants would feel comfortable about accepting bitcoin, which may lead to wider adoption.

A number of large Wall Street firms including Goldman Sachs and ICE, the parent company of the New York Stock Exchange, made headlines when they announced their intention to enter the market for digital assets. Behind the headlines, large money managers, hedge funds, and endowments have also been entering the market.

See more - https://www.businessinsider.com/wall-street-firms-are-making-bitcoin-more-stable-2018-8

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[Kakmakr]

The thing is, Wall Street has not entered the Bitcoin seen on a large scale yet. The price stability has occurred because more coins are shifting away from whales to more investors and that brings less volatility. During the Bitcoin boom in 2017, a lot of hoarders sold some of their coins and a lot more people bought these coins.

Whales have less coins now to manipulate the price, to cause higher volatility and some exchanges are regulated a lot better now, so they can detect these "whales" and also reduce manipulation. 

[gentlemand]

That sounds like a crock of shit.

The only reason it's more 'stable' is due to the post bubble hangover. It was also quite stunningly 'stable' in 2015 when it was wedged in the $250 range for what felt like forever. Didn't see many signs of Wall St back then.

As soon as bubbledom is in the air the idea of stability will be a complete and utter joke.

[carlfebz2]

That sounds like a crock of shit.

The only reason it's more 'stable' is due to the post bubble hangover. It was also quite stunningly 'stable' in 2015 when it was wedged in the $250 range for what felt like forever. Didn't see many signs of Wall St back then.

As soon as bubbledom is in the air the idea of stability will be a complete and utter joke.

I don't know if they do put up into their minds about that word "stability" in crypto specially with Bitcoin itself.They are presuming things that they can able to control stability without even thinking the previous movements on past years.
Their involvement doesn't mean they can able to decrease the volatility because btc isn't just like stocks,local fiat currencies,assets.

[figmentofmyass]

i love how they throw this in:

That stability is crucial as if there's less price fluctuation, then more merchants would feel comfortable about accepting bitcoin, which may lead to wider adoption.

what is this, 2013? who gives a shit about merchant adoption?

That sounds like a crock of shit.

The only reason it's more 'stable' is due to the post bubble hangover.

couldn't have said it better myself. so many clueless commentators and self-styled "experts" try to come up with explanations for price movement and volatility. but the ignore the simplest explanation: market cycles.

It was also quite stunningly 'stable' in 2015 when it was wedged in the $250 range for what felt like forever. Didn't see many signs of Wall St back then.

i was actually just thinking about that---very similar price structure. seems too soon to have based for another bubble yet though.

[Thekool1s]

LOL, you know what's funny? The Article itself is acting like a 'bull' signal 

[bbc.reporter]

That sounds like a crock of shit.

The only reason it's more 'stable' is due to the post bubble hangover. It was also quite stunningly 'stable' in 2015 when it was wedged in the $250 range for what felt like forever. Didn't see many signs of Wall St back then.

As soon as bubbledom is in the air the idea of stability will be a complete and utter joke.

It appears that SFOX might have already taken a position in bitcoin hehehe. Why else would they make a positive statement like that for the news media?

@Thekool1s. Agreed 100%!

[FXTradingPro]

Interesting choice of image for the article. It is from last Week Tonight with John Oliver. If I remember correctly it was quite critical of the risks of Bitcoin and Cryptos. 

[cetald]

I agree with the author. And whoever that said, I - for regulation bitcoin and all cryptocurrencies. Regulation will increase the confidence of most people in the cryptocurrency market.

[magneto]

I really doubt that institutional investors are the reason that bitcoin is relatively dormant and stable right now.

The fact is that we are currently well into a bear market, which means that prices are less subject to change, and in the rare occasion that a big swing in price comes, it will be downwards. It's got nothing to do with whether or not there are institutional investors from Wall Street coming in.

And it's important to note that even though these firms are indeed entering the bitcoin trading scene, a lot of what you see on the news are actually them "planning" on doing it, instead of actually full-scale trading and investing in bitcoin. That's a huge distinction to make.