Financial expert spoke about the reasons for the fall in the BTC price
Former manager of hedge fund Goldman Sachs Raul Pal commented on the likely prerequisites for a decline in the price of the main cryptocurrency. In November of this year, the crypto coin surpassed the $68,000 mark, but now bitcoin is trading at about $48,000.
The CEO of Real Vision TV believes that this is due to the profit taking by large investors. According to Pal, the process has already been completed, so one should not expect a serious decline in the BTC rate.
“It looks like they finished. Last week the market was quite volatile, as it always happens when the reporting period ends and everyone knocked out their balances,” the expert noted.
Raoul Pal also pointed out that sales in Asia may still continue, but a fairly large-scale rise in the crypto market is expected early next year. The reason lies in the inflow of capital from institutional investors, which will again be transferred to digital currencies.
Former manager of hedge fund Goldman Sachs expects large investors to take an increased focus on cryptocurrencies in 2022 due to the active adoption of digital assets.
Noel Acheson of Genesis Trading agreed with Raoul Pal. She noted the significant involvement of institutional investors in the crypto industry.
“The growth in interest from institutions over the past year has been impressive and we see strong signs that the trend will continue next year. They will invest both directly and in companies dealing with infrastructure in the cryptocurrency market,” she said.
In October of this year, JPMorgan analysts announced the reasons why the first cryptocurrency rose by more than 35%. The report for clients said that a key prerequisite for the rise in bitcoin price was the increased demand for it from institutions.
“Institutional investors are returning to bitcoin, perhaps seeing it as a better inflation hedge than gold,” the report said.
Does this indicate a certain trend? And is it worth waiting for investments in bitcoins early next year from large investors?