By Laura He @lauraliuhe SCMP
Stephen Innes, head of trading for Asia Pacific at Oanda, said CME’s acceptance seems to have lit a fire under Wall Street.
“Intense media coverage is also supporting the bitcoin rally, which has caused investors’ pervasive apprehension that they’re missing the party, or the underlying fear of losing out of a quick profit. ”
He expected more institutional players to enter the market.
“Having bitcoin on a regulated exchange broadens its legitimacy and credibility as hopefully more of the larger know primary market makers will enter the game.
“While I suspect we’re still ways off of having institutional grade level liquidity, I think provided there is a favourable lift off, bitcoin could surge higher.”
However, “it’s not all a bed of roses.”
“Government agencies will likely clamp down on excessive margin given the hyper-volatility and potential losses non-sophisticated investors may encounter. ”
“This brings me to my biggest fear for retail clients that when the masses identify the trend, it’s usually a sign the market has topped now. Whether or not this holds true in this crazy bitcoin ramp or not only time will tell.”