Kevin O'Leary believes that Bitcoin and cryptocurrency will not see new institutional currency until they are regulated. Speaking in an interview, he said that Bitcoin has been stuck trading between $17,000 and $30,000 for a long time and no new money has come in as the same people continue to trade. Institutional investors want the cryptocurrency market to be regulated for various reasons, and the cryptocurrency market needs to implement these regulations to attract more institutional investment.

Now, you might wonder why institutional investors are important for the cryptocurrency market. Here are several reasons:

1. Institutional investors bring significant capital to the market, which can increase liquidity and improve price discovery.
2. The involvement of institutional investors can help increase the credibility and legitimacy of the cryptocurrency market.
3. Institutional investors can help reduce overall portfolio risk by bringing diversification to the cryptocurrency market.
4. Institutional investors bring to market professional investment management that can help increase overall market efficiency and reduce risk for individual investors.
5. Involvement of institutional investors in the cryptocurrency market can lead to increased innovation and investment in infrastructure that can benefit the general market and investors.
6. The involvement of institutional investors in the cryptocurrency market could lead to greater regulation, which could help reduce risk and increase investor confidence.

In general, the participation of institutional investors is essential for the growth and maturation of the cryptocurrency market and can bring significant benefits to both institutional and individual investors.

Now the question arises, why do institutional investors want regulation? Here are the reasons:

1. Regulations should be enacted to prevent market manipulation and protect investors from price fluctuations in cryptocurrencies.
2. Regulatory authority is needed to authorize alternative cryptocurrencies, fully disclose digital assets, and protect customers.
3. Professional financial advisors with cryptocurrency and information infrastructure knowledge are needed to understand technological risks.
4. Laws can help investors protect their assets from online fraud and cyber attacks.
5. A customer due diligence process similar to that of a bank is required to prevent money laundering and any violation should be severely punished.

O'Leary predicts that cryptocurrency will eventually eventually become the 12th sector for the economy. It also suggests that stablecoins like USDC could be used in transactions to replace the expensive, slow and opaque Swift system if regulated. In the same interview, he expressed concern about First Republic Bank, predicting that it could fail and lose $40 billion, causing losses to shareholders and bonds.

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