cryptocurrency market id c103c637 f626 47bb 9293 4328325c7cc2 size900 As Crypto plummets, what will attract institutional investors into Crypto assets?

As Crypto plummets, what will attract institutional investors into Crypto assets?

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-Cryptocurrencies are facing unprecedented and unrelenting pressure on both a micro and macro level.
-The Terra crash and the failed risk management of Celsius and other lending platforms have done little to alleviate the wider climate of fear and uncertainty.
-Three Arrows Capital was another casualty, failing to pay out their loans at maturity and eventually declaring bankruptcy.
-These events were at least partly responsible for a serious level of institutional deleveraging that saw a sharp increase in the need for liquidity in the lending markets.
-Unlike the near-term vision of many retail investors, many traditional institutions hold a long-term bullish sentiment on cryptocurrencies and are willing to hold through short-term fluctuations to benefit from the appreciation in crypto as an asset class.
-Many institutions that dont yet own crypto as an asset class have the crypto playbook ready in their drawer; strategies will be in place to mobilise teams once there is a sustainable uptick and change of sentiment in the market, and allocations will be set for their portfolios.
-The fundamentals at a macro level havent changed. For the first time ever, we will get to see how crypto performs in a high inflation environment, and it will be interesting to see how sentiment is shaped by the fact that traditional finance is tempered in what it can do to ease the broader economic burden.
-Regulatory conversation has been kicked into overdrive by the collapse of numerous lending platforms, and we have already seen governing bodies accelerate their timelines to getting rules and regulations signed off.

 

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