Last spring and the beginning of summer 2019 saw digital asset markets spike considerably in value, and many speculators assumed the rise was due to institutional investors. However, BTC and a variety of other popular digital asset prices started plummeting in August. Reports now detail that institutional interest is waning and new data that analyzed the collaboration between institutions and cryptocurrency headlines has dropped significantly. Moreover, the highly anticipated Bakkt futures launch didn’t match the initial hype. The Intercontinental Exchange (ICE) physically-settled bitcoin futures products continue to see low volumes despite the first block trade settled.
Also Read: Money and Democracy: Why You Never Get to Vote on the Most Important Part of Society
Institutional Interest Headlines Drop Significantly, While GBTC Premium Slides to a 7-Month Low
A few months ago everyone heard about the strong institutional interest trend stemming from speculators who believed financial incumbents and well known investors were joining the crypto revolution. Headlines at the time declared the bullish price charge was different this time around as there was very little retail interest in digital currencies. The last price spike was allegedly started by institutional participants. However, things have changed and the overall market valuation of all 2000+ digital assets has lost billions over the last month. Adding more insult to injury, on October 2 the cryptocurrency trading researchers called The Tie explained that headlines involving the terms “institutions” and “bitcoin” have dropped expressively low.
“Mentions of institutional interest in bitcoin in news headlines have plummeted to a 2019 low after seeing significant growth throughout the summer,” The Tie researchers detailed. “The data used more than 85,000 unique publication headlines since October 2017.”
Similarly, mentions of the word “gold” in
