Investors have long valued cryptocurrencies for their ability to offer high rewards. While high risk is also a factor with this time of investment, following breaking cryptocurrency news is effective in investors responding to volatile markets and limiting their potential for loss. In addition, even if markets fall, they are also quick to rise, responding faster than traditional types of markets to positive news.
However, this last year has demonstrated that the breaking cryptocurrency news is less about the volatility of the market and more about the mainstreaming of the idea of trading cryptocurrencies. According to Coinbase Global, institutions traded more than $1.14 trillion US in cryptocurrencies, which is over two times the $535 billion traded by individual investors in the markets.
What Does This Mean?
While not breaking cryptocurrency news, the increasing demand for regulation of the crypto markets is largely driven by the increasing number of institutional investors in the market. This does have a positive effect, with these large investors adding validity to the markets while also helping to reduce the volatility.
Large institutional investors do not tend to respond to market trends or geopolitical issues. Instead, they tend to have long-term strategies, which assist in preventing dramatic changes in the volume of trade when the market turns down.
In addition, the large investors, including asset managers, pension funds, and corporate fund management services, are choosing to enter the cryptocurrency market through platforms provided by institutions, which is a further change in this constantly evolving market.
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