Ted Rogers, the chairman of Xapo, a popular Bitcoin wallet and vault operator, has said that the lower price range of Bitcoin presents a better opportunity to purchase the digital asset. In a recent statement, Rogers said:”We could be in the midst of the extinction-level event for ‘cryptoassets’ that many maximalists have predicted. 90%+ of CoinMarketCap list will disappear eventually – might as well happen now. Meantime, lower BTC price means incredible opportunity to buy more Bitcoin”Why is Rogers Very Optimistic? Earlier this year, Bloomberg reported that Xapo, the go-to vault service provider for large-scale retail traders and institutions, has been holding more than $10 billion worth of Bitcoin in its vaults in Switzerland, more than the amount of deposits 98 percent of banks in the US hold. In an interview, Ryan Radloff of CoinShares told Bloomberg that he personally holds more than $500 million worth of Bitcoin with Xapo and all of the large-scale inivestors in the cryptocurrency sector hold Bitcoin in the secure vaults of Xapo to protect their holdings. In early 2018, Xapo brought in Peter Najarian, a veteran banker at UBS Group AG and Royal Bank of Scotland Group, to bring in more institutional investors into the cryptocurrency space with trusted custodian solutions, vault systems, and secure storage services. Najarian, who has served the traditional finance sector many decades, said that a wave of institutional investors are quietly planning to enter the cryptocurrency market, echoing the sentiment of billionaire investor MIke Novogratz.”A fraction of that kind of institutional money flowing into the space would be a tidal wave,” he said. The optimism towards the long-term trend of Bitcoin publicly expressed by Rogers likely comes from his understanding of the market and the expected entrance of institutional investors from the finance sector. The vast majority of large holders and so-called “whales” in the Bitcoin market have been holding large sums of capital with Xapo and other trusted third parties with the intent of holding their money in the dominant cryptocurrency for long periods of time, without the intend to sell. The bull run of 2017 was triggered by the entrance of speculators, not institutional investors nor large-scale retail traders in public financial markets. Consequently, as speculators exited the market by early 2018, the market crashed, ultimately recording a 78 percent correction. Still, the market currently is where it was at in October of 2017, and most large holders of cryptocurrencies still remain in the market with companies like Xapo and Coinbase facilitating the demand. The Next Wave Will be BigAs the cryptocurrency sector has done throughout the past eight years, the market will see the same trend it has seen in 2012, 2014, and 2016. After every 70 to 90 percent correction followed a mid to long-term rally. If the next rally is fueled by the entrance of institutional investors and as Novogratz explained, Fear of Missing Out (FOMO) amongst institutional investors, the level of demand and interest generated towards the cryptocurrency sector will likely be unprecedented.”It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of the sudden, the second guy buys. The same FOMO that you saw in retail [will be demonstrated by institutional investors],” Novogratz said. Featured Image From ShutterstockXapo Chairman Optimistic: Lower Bitcoin Price Means Better Opportunity to Buy it was last modified: August 16th, 2018 by Joseph Young