- Institutions are not going to lead the party they’re going to be followers
- The most exciting thing is people leaving jobs at Goldman Sachs and McKinsey to join crypto market
While speaking with CNBC’s Kate Rooney, Lou Kerner, partner at Crypto Oracle and former Goldsachs analyst talks about the current drop in BTC prices that started right after Bakkt’s launch during the weekend.
This Kerner said was ‘buy on the rumor, sell on the news’ which the market knew was coming for a long time.
“Bitcoin is not about institutions actually it’s the antithesis of institutions and (…) we don’t need institutions to come to this party for Bitcoin to break out again.”
Institutions will be Followers Not the Leaders
People however, have been saying for a long time now that institutions will act as a catalyst and a new wave of money will move into Bitcoin leading to the next leg higher.
But Kerner doesn’t agree as he said,
“We’ve had a lot of legs higher without it’s any institutional involvement. It’s coming, it’s like gravity, they’re gonna be here but they are not going to lead the party they’re going to be followers.”
The hosts argued how this has been the issue with Bakkt launch. While people were expecting the floodgates would open, Bakkt had a slow start, recording just about 72 BTC contracts in first 24 hours.
They also talked about how once a level, say $9,000 was broken, it had a ripple effect. The level had a snowball effect and the herd mentality had the price now looking at $7,000 as the next level. he said:
“One of the things that exacerbates it is all the leverage, hundred to one leverage, that BitMEX offers, meaning people are getting stopped out every few ticks, so that definitely compounds the effect of any downdraft.”
However, he said,
“Bitcoin is going to be a hundred, thousand or a million in five or ten or twenty years, then all the ups and downs that we’re seeing today is just noise.”
Bitcoin’s status as Digital Gold under threat?
The host further points how this week challenges bitcoin’s place as a safe haven asset as both stocks and BTC went down.
This she said, puts its digital gold narrative into question, but Kerner said, as an investor, one needs to have a thesis.
He personally believes in the analogy that Bitcoin is digital gold while people believe that more or less during different times.
But the price is not the most exciting thing, what’s brilliant is people are leaving jobs at Goldman Sachs and McKinsey. That is so because,
“they’re seeing the crypto light, they’re seeing a better world and there seem really a better way of doing capitalism.”
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