Market Correction Could Be the Perfect Entry Point for Price-Conscious Institutional Investors
For individual investors, the recent market decline is a nightmare as they could only watch helplessly as their digital holdings shrink in value because of the plunge in crypto prices. However, the downturn did not seem to rattle institutional investors as much as they continue to march ahead with their plans to enter into the crypto scene. In fact, it might even give them the perfect opportunity to buy tokens at very cheap prices.
September Market Correction
It’s another month and another market correction. Last month’s plunge dragged Bitcoin to $6,143 on Aug. 10. Of course, everyone assumed that things are starting to get better as the coin was once again trading at the $7,200 to $7,300 range when September arrived. However, another plunge was just waiting to happen almost like clockwork, which dragged the crypto down to $6,183 on Sept. 8.
As usual, almost everyone got panicky, which is understandable considering the abundance of negative news. For instance, Bloomberg reported that the plunge was worse than the dot-com crash in the early 2000s, while CNN published an article about a man who lost his savings because of the plunge in crypto prices.
Thankfully, the recent market movements indicate that recovery is on the way. Bitcoin is inching upward once more and is now trading at $6,395 as of this writing. Similarly, most cryptocurrencies are showing signs of recovery, and prices at the moment show positive variance.
Institutional Investor Interest Remains High Despite Price Fluctuations
Meanwhile, amid all the chaos brought by the recent market decline, institutional investors remain unperturbed with no plans on putting a stop to their crypto investment strategies. According to Finder, interest from these investors will keep on barreling like a train regardless of what the markets are doing.
This trend was also observed by Adrian Przelozny, CEO of the Independent Reserve digital asset exchange, who revealed:
“Although retail interest in cryptocurrency has waned in light of this year’s price drops, we are seeing a consistent increase in institutional interest in line with the maturing products being offered in the market place.”
Crypto exchanges are also busy preparing for the mass entry of institutional investors that show a firm belief that all price fluctuations in the market are temporary in nature. For example, Bittrex just launched an international division to better manage its businesses outside the US. Similarly, Coinbase plans to lure institutional funds by reducing its fees and hiring Jeff Horowitz as its chief compliance officer.
While individual crypto investors panicked during the recent correction, institutional investors remain steadfast in their commitment to getting into the crypto scene. In fact, they might even view this as the perfect time to make their entry as market corrections offer a rare opportunity to get their hands on digital assets at very low prices.
Market Correction Could Be the Perfect Entry Point for Price-Conscious Institutional Investors was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.