David Coker said that higher transaction fees are putting people off buying. “In December fees were pushed up to $55. They have dropped since but as of this morning they are still about $22, compared to three months ago when fees were less than $1. These high fees have put off casual purchasers who might have bought $25 or $100, and also caused those selling to stay away when they might have bought on the drip.
“This, combined with tighter regulation, is driving down prices, but they are likely to rebound. Myself? I’m holding and didn’t sell. No real plans to either.”
Also, Coker told Funds Europe that the current instability in Bitcoin’s value is likely to subside once institutional investors enter the market. He was quoted as saying: “Once financial products allowing investors to protect themselves against drops in price are in place, we’ll likely see a wave of money from institutional investors enter the market, all chasing a limited supply of bitcoin.”