Susquehanna Exec: Bakkt and Fidelity Could Solve Bitcoin’s Liquidity IssueOver the past week, the price of Bitcoin has dropped by more than 35 percent, and the majority of analysts in the crypto space have shared the sentiment that the crash was triggered by the contentious hard fork of Bitcoin Cash.
According to Bart Smith, the head of digital asset at trading giant Susquehanna, a lack of liquidity in Bitcoin markets allowed the dominant cryptocurrency to be vulnerable to a large sell-off caused by the Bitcoin Cash hash power war and hard fork.
In the months to come, Smith explained that the entrance of Fidelity, ICE, and Bakkt into the cryptocurrency market could increase the liquidity of BTC and lead to a rise in capital in the space to soak up big sell-offs.
Importance of Fidelity and Bakkt
Currently, it is fairly difficult for an average trader to invest in the cryptocurrency exchange market through trading platforms like Coinbase and Bitstamp. Investors are required to hand in photocopies of government-issued documents, undergo rigorous Know Your Customer (KYC) processes, and comply with policies enforced by exchanges.
As #bitcoin plunges and nears $4,000, Wall Street's Crypto King Bart Smith of Susquehanna says he's still a long-term believer in the cryptocurrency. pic.twitter.com/SzsL9tZAhB
— CNBC's Fast Money (@CNBCFastMoney) November 20, 2018
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https://www.ccn.com/susquehanna-exec-bakkt-and-fidelity-could-solve-bitcoins-liquidity-issue/