Former JP Morgan analyst Nikolaos Panigirtzoglou used to be well known on Wall Street for being a crypto bear. Now he is predicting that the leading cryptocurrency could be set for a major comeback. So what has changed his mind?
Panigirtzoglou was being interviewed on CNBC’s Futures Now show when he said “the cryptocurrency market’s recent struggles could set the stage for future institutional adoption, which many bulls predict will spur the next great bitcoin bull run.”
The JP Morgan global market strategist went on to say: “The stability that we are seeing right now in the cryptocurrency market is setting the stage for more participation by institutional investors in the future. The cryptocurrency market was a new market. It went through a bubble phase [and] the burst.”
This is much more positive than his previous statements. He also said that an increase in clarity around regulations would increase confidence in the big institutions and that “continuing adoption of blockchain technology in enterprise environments would pay dividends for bitcoin as well.”
He told CNBC “The big obstacle is regulators right now,” and remarked on how slow they have been to address emerging technologies. The upshot of this is that it could take a few years for institutional investors to ramp up their engagement with the market.