Bitcoin Has Found its Bottom, Says DCG CEO Barry Silbert

Bitcoin Has Found its Bottom, Says DCG CEO Barry Silbert

Larry Silbert believes that Bitcoin has bottomed out for 2018. The CEO and founder of Digital Currency Group (DCG) expects 2019 to be a breakout year for cryptocurrency as the market consolidates in 2018. Silbert also revealed the level of institutional investment in the space right now while giving his predictions for the coming year. The cryptocurrency market has been in the midst of a significant price rally after a slew of positive developments in the industry.

The Reason for the Recent Bitcoin Surge

Speaking to CNBC, the DCG chief talked about the recent price surge for Bitcoin and other cryptocurrencies. According to Silbert:

“A lot of people were looking for the [Bitcoin] bottom. Institutional investors were waiting for the right opportunity to enter the market. The bears ran out of BTC to sell, and the technicals look promising at the moment.”

The DCG CEO also spoke about the market becoming immune to negative sentiments from regulators. According to Silbert, it is a bullish sign when prices are negatively affected by negative comments from the likes of the Fed and the SEC.

Most Institutional Investors Want to Be “Fast Second Followers”

On the matter of the presence of institutional investors in the market, Silbert also had some interesting things to say. According to the man affectionately dubbed “the crypto king,” Silbert said that while hedge funds continue to stay away from cryptocurrency investments, the principals themselves have been trading in the market for a while now.

Silbert also revealed that 56 percent of the $250 million raised by Grayscale Investments was from institutional investors. DCG owns Grayscale and it is the largest investment company in the crypto market. Silbert, however, reiterated the need for custodial tools to encourage more institutional players into the market.

According to Silbert, many of the big money investors don’t want to be the first to enter the market, and they also don’t want to be the last. The DCG chief believes that these mainstream investors are looking to be “fast second followers” into the market.

2019 Will Be a Breakout Year for Cryptocurrency

During the discussion, Silbert talked about DCG’s involvement in the market, revealing that the company had investments across the entire spectrum of the burgeoning industry. However, Silbert revealed that enterprise blockchain was a weak area in the emerging market, saying:

“Candidly, on the enterprise blockchain, [there is] very little traction, very little evidence that there is product-market fit.”

Silbert instead identified the store of value prop as well as the infrastructure required to create the on-ramp and off-ramp for Wall Street entry into the market. To this end, the DCG founder believes that 2019 will be a breakout year for cryptocurrencies as the dividends of the market consolidation of 2018 begin to manifest.

The post Bitcoin Has Found its Bottom, Says DCG CEO Barry Silbert appeared first on UNHASHED.

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