The rapidly increasing global market capitalization of Bitcoin ( at time press $ 95 billion) and the increasing mainstream adoption of it as a robust store of value make it too hard for Wall Street to continue to reject Bitcoin and the cryptocurrency markets.
Until last month, prominent business and bank figures of Wall Street boldly stated that Bitcoin is a bubble or a pyramid scheme comparing it with severe previous fraudulent actions.
Now, the user base and the market cap of Bitcoin does not “allow” Wall Street blindly ignore the market. Wall Street is doubtlessly aware of the fact that a continued failure to adopt Bitcoin and the rest of cryptocurrencies may lead to the banks’ isolation from cryptocurrencies’ blooming market.
Many leading investors like Mike Novogratz, Kyle Bass, and Goldman Sachs’ officers decided to support Bitcoin and the crypto market (via their statements) instead of reject or blame it.
Ami Ben David, co-founder of venture capital fund Spice, told FT in an interview:
“A year ago they didn’t know about it, six months ago they thought it was a scam and now they realize they simply just don’t understand it and are starting to get nervous and want to learn about it. There is definitely an element of FOMO. People have been told by their advisers, ‘Don’t touch it! It’s a bubble!’, and now they are upset they might have already missed it.”
Goldman Sachs, in the middle of a growing tidal of Bitcoin demand, has been prepared to launch a crypto trading platform listening to the clients’ interests. Paul Vigna of the Wall Street Journal wrote:
“Goldman’s effort involves both its currency-trading division and the bank’s strategic investment group, the people said. That suggests the firm believes Bitcoin’s future is more as a payment method rather than a store of value, like gold.”
The next step is the Bitcoin adoption by institutional investors. Last week, billionaire hedge fund Mike Novogratz revealed the establishment of his fund that focuses on Bitcoin and the cryptocurrency market shortly. This fund is targeting at attracting except significant investment firms and a few large institutional investors.
“I can hear the herd coming. I was just in San Francisco, met with a few big institutional investors and they are still ways away, but they are coming. Lots of funds are being raised, and so I’m pretty confident to say that it [Bitcoin price] is going higher,” said Novogratz.