Within the cryptocurrency markets, a new trend has emerged in the last week: Bitcoin has remained reasonably stable while altcoins have suffered. The market’s losses have had an impact on the performance of the majority of coins, including Bitcoin. While the most valuable cryptocurrency swiftly recovered above psychological resistance, its drop to $28,000 has set a negative tone for other major cryptocurrencies.
Despite the adverse market conditions, the value of Bitcoin continues to be a topic of conversation among financial institutions.
Regulation is the Need of the Hour
Marion Laboure, senior analyst at Deutsche Bank Research and author of ‘Democratizing Finance,’ spoke with CNBC on May 27 about her thoughts on cryptocurrencies and pricing behavior in the context of demand outstripping supply while regulation lurks in the background.
Following the recent collapse of the Terra (LUNA) ecosystem, Laboure argued that more regulation is needed in the crypto industry. She emphasized that there is a difference between Bitcoin and other cryptocurrencies, particularly the newer ones on the market, in this regard.
“I think we definitely need regulation as you mentioned financial literacy is pretty low even in advanced economies we need more data as well there is clearly a lack of data regarding cryptocurrencies.”
Furthermore, Laboure noted that the market has seen a lot of volatility in recent months and years and that this volatility isn’t going away anytime soon.
On a more hopeful note, she stated that if the bitcoin market is regulated, it will be more widely accepted, and liquidity will increase. As a result, if the market has more liquidity, it may have a lower relevance. Finally, unlike a commodity such as diamonds, Laboure believes Bitcoin’s value will fluctuate based on what people believe it is worth.
At the time of writing, Bitcoin is trading at $28,380 and has lost more than 4 percent in the last 24 hours.