Bitcoin (BTC) Gets Positive Signal From NYSE’s Chairman
- The correction is the market had been healthy
Bitcoin has seen a deep dive in price over the 11 months, but the CEO of one of the world’s biggest exchange operators is not deterred from entering the cryptocurrency space.
Jeffrey Sprecher, CEO of IntercontinentalExchange (NYSE:ICE) and Chairman of the New York Stock Exchange, spoke enthusiastically about cryptocurrencies at the Consensus: Invest conference in New York Tuesday.
Bitcoin is off more than 80% from its December 2017 highs, he says is seeing headlines asking “Will digital assets survive?”
Mr. Sprecher was on stage with his wife, Kelly Loeffler, the CEO of Bakkt, a crypto platform owned by ICE that is due to begin operations next year.
Mohamed El-Erian, chief economic adviser at Allianz, said Tuesday that, “Cryptocurrencies are here to stay despite a prolonged slump this year, and will gain wider acceptance after the recent entry of more institutional investors in the space.”
Consensus: Invest in New York, Mr. El-Erian said the participation of institutional investors in various crypto projects, even as retail investors have shied away because of price declines, is a positive sign.
“I think cryptocurrencies will exist, they will become more and more widespread, but they will be part of an ecosystem. They will not be dominant as some of the early adopters believed them to be,” Mr. El-Erian said.
Mr. El-Erian was positive about the outlook for crypto assets because of the growing interest from institutional investors.
“We are seeing a rotation going on – retail is becoming more reasonable if you like,” he said. “The exuberance is behind us, and institutions are starting to establish a foothold and that’s good long-term.”
He emphasized that cryptocurrencies are commodities, not currencies. “They do not have the intrinsic attributes of a currency. It is not going to replace money,” he added.
Mr. El-Erian said the 11 month Bear market crypto was not surprising. The market is going through a cycle – that of over-consumption that took Bitcoin to nearly $20,000 and overproduction that has resulted in the current sell-off, he added.
El-Erian said this is healthy for the market.
He said he was initially skeptical about Bitcoin because it was 1st presented to him as a global currency, which was never really the case, he has since changed his mind.
“I didn’t initially distinguish between cryptocurrency and the underlying technology. I treated it all as 1,” El-Erian said. “As I evolved … I learned in the process.”
Blockchain, the technology that underpins digital currencies, is a digital ledger that provides a secure way of making and recording transactions.
Currently, Bitcoin is trading at: 3,892.65, +69.66, +1.8221%, as of 3:51a GMT, the market is open