Analyst and CEO of the company Tetsuyuki Oishi said that increases the attractiveness of the cryptocurrency and why it will become more expensive during the crisis caused by the coronavirus
Due to the coronavirus pandemic, demand for bitcoin from institutional investors will grow, said analyst and head of Bitcoin Lab Tetsuyuki Oishi. The first reason for this, he called the low probability of a rapid recovery of the stock market to previous values, reports bitcoin.com.
"Most investors believe that a V-shaped recovery in stock prices will be problematic. Investors need to look for other investment options instead of stocks, they can't stay in cash, " Tetsuyuki explained.
Another reason for the growth of bitcoin's attractiveness as an investment, the analyst believes that there is a low correlation between the crypto market and traditional financial instruments. Gold and cryptocurrencies fell significantly during the downturn in the stock market, but now their price has recovered. This means that these assets do not depend on the "vague future of society", explained the head of the company. He added that most institutional investors have not yet transferred their capital to the main digital coin. Therefore, it is likely to rise in price during the crisis triggered by the coronavirus pandemic, Tetsuyuki concluded.
Last week, the cryptocurrency Agency Weiss Rating published a rating of digital assets, which placed bitcoin on the 11th line. The Tezos token was in the first place, and the Ethereum altcoin was in the fifth.