Home Altcoins News Cryptocurrency Investors Taking a Run for Life- Cannot Insure a Hack

Cryptocurrency Investors Taking a Run for Life- Cannot Insure a Hack

Cryptocurrency investors

JPMorgan firmly believes that institutions are scared of crypto.  While there are other experts, who stated that there is a growing interest in crypto among investors.

While the cryptocurrency market has recovered from their recent slump, JP Morgan does not believe there being anything called a rosy or bright future for the crypto.  The recent collapse in the cryptocurrency market lies somewhere at about 80%.  The decline in the value of the crypto is said to be the reason why investors are considering the inherent danger that comes with this digital asset.

In a recent research paper, analysts have stated that there has been a drastic decline in the participation by the financial institutions investing in Bitcoin Trading.  They have to state that the key flow metrics have declined dramatically.

The experts have also remarked about how the price collapse has as well affected the crypto miners. Several of them were pushed to a state where they decided to shut down their business as it became unprofitable.

Mike McGlone took a different view stating that regardless of the price decline there is an increase in institutional interest concerning cryptocurrency. There are several contracts from CME and CBOE that are currently at an all-time high.

McGlone further added that sharp rallies are to be expected in the forthcoming months as they are completely oversold by several metrics. Particularly using technical indicators like moving averages and the relative-strength index.

The current trend in the cryptocurrency market can be considered as a calm down after a strong rally according to some experts.  The overall sentiment they opine is positive.

There are yet others who have stated that the current market is chasing away investors because it is not possible to insure the network against a hack.  Many institutions feel that this is a nascent asset class. Hack and thefts have contributed to reputational damage of exchanges.

Several crypto firms who are willing to function institutionally will want to buy proper insurance.  Insurance is a regulatory and legal requirement.  Regardless of the best efforts, it is not possible to get coverage. Institutional investors will not be interested in anything that is not insured. This is also a major criterion to license particular cryptocurrency exchanges.  While a few companies are offering these insurances, it is not an easy walk in the park experience to avail one.

Individual investors are as well interested in getting the same kind of insurance they will get if they were signing up for traditional financial products.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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