Real Vision CEO Raoul Pal believes that the recent volatility in the price of Bitcoin is due to the fact thatorganizations were selling their inventory to make a profit for the year.
In his opinion, the market is currently very unstable due to the strong influence of institutions.
Considering that most of the sales in Decembercame from wallets that accumulated bitcoins in the summer (data from Glassnode), and taking into account the fact that cryptoassets managed by institutions rose sharply in May and October, the timing of the sale does point to the organizations.
Now the big question is: Are they done? Pal asked. - It seems that yes, because last week the market chattered, and this was the last week when everyone was debiting credit.
At the same time, the expert does not exclude that sales maycontinue in the Asian market, which, apparently, we are seeing with a pullback of bitcoin in the $ 47,000 range. However, Pal expects 2022 to start with a take-off in cryptocurrency markets, as the capital of the organizations returns.
The top manager is convinced that in 2022, institutional investors will better understand the ever-increasing adoption of technology, the implications of this process for the market capitalization of the crypto market.
Noel Acheson of Genesis Trading also believesthat "clear signs of acceleration of adoption by institutions will take place next year, both through direct investment and through investment in companies involved in the infrastructure of the cryptocurrency market."
Over the past 24 hours, Bitcoin has fallen about 3.1% to trade at $47,719.
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