How these big players are reshaping Bitcoin market

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Published: April 30, 2018 4:49:52 PM

A new narrative is being provided by the bigger players such as new OTC exchanges and platforms namely Cumberland, Gemini and Gatecoin to name a few.

So far, the year 2018 has been tough on cryptomarket. Since its beginning, cryptocurrencies including Bitcoin have seen plunge in trading volumes due to worldwide wave of regulation. Even the topmost social media platforms have banned hosting advertisements related to the cryptocurrencies. In April, Bitcoin rallied 25 percent after plunging 70 percent from a high of about $20,000 in the later part of the last year. The digital currency market is undergoing high volatility currently.

“It needs a new narrative,” Nicholas Colas, New York-based founder of investment research firm DataTrek told Reuters. “There is every chance that if there is some sort of institutional involvement, there could be a move higher,” he added. The new narrative is being provided by the bigger players such as new OTC exchanges and platforms namely Cumberland, Gemini and Gatecoin to name a few. Experts believe that participation of these new players will make Bitcoin markets less volatile.

Cumberland: It is one of the biggest block traders in the market. It has counterparties in more than 35 countries and quotes two-way prices in about 35 cryptocurrency assets.

Gemini: This new block trading product allows high-volume trades. These trades are invisible to other traders until the orders are filled.

Gatecoin: It is a crypto exchange based out of Hong Kong-based. It saw retail volumes plunge from peaks of $100 million a day last September, Aurelien Menant, its founder and chief executive told Reuters. It also operates an over the counter (OTC) platform.

Reuters report said that as these big players entered the market, the OTC trades which were hidden from view pushed up overall volumes in such a way that generally doesn’t show up in data. However, there are not many institutions which have planned to trade in cryptocurrencies as not many are sure about the authenticity of the digital currencies.

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