Institutional interest in Bitcoin has dried up but will soon pick up again, according to JPMorgan global market strategist Nikolaos Panigirtzoglou.
Appearing in an interview with CNBC on June 29, global market strategist for U.S. banking giant J.P. Morgan, Nikolaos Panigirtzoglou said that Bitcoin’s dominance indicates when the current state of the bear phase will come to an end, saying:
"I think it’s another indicator to watch here in terms of whether these bear phases are over or not."
According to him, the leading cryptocurrency climbing above 50 percent would be healthy. Pointing out that Bitcoin’s dominance had “abruptly” dropped in April from 61% to 40% in a little over a month, he notes that inflows into Bitcoin funds have improved at the expense of altcoins.
According to him, institutions are seeing this as a relative value opportunity in Bitcoin funds instead of the leading cryptocurrency. however, the overall outflow remains bearish.
Despite the current market conditions, Panigirtzoglou said there will be a price at which institutional interest will pick up again over the long term and the price volatility will be normalized.
At the same, over two weeks ago, Panigirtzoglou told Business Insider that Bitcoin may have to drop below $30,000 to lure back institutional investors, saying big players were turned off by Bitcoin’s higher price:
“If you ask, right now, institutional investors whether $50,000 or $60,000 is looking like an attractive level for bitcoin, they will most likely say no. I fear we might need to see bitcoin moving below $30,000 for that institutional interest to pick up considerably.”
In fact, one of the key reasons for Bitcoin’s price drop over the past few months has been the sharp decline in interest from big players. He pointed out that Bitcoin's share of the overall market had fallen to around 46% compared to a level around 60% at the beginning of April.