- In a recent interview, Raoul Pal mentioned that institutional investors are selling their Bitcoins to lock in their profits.
- He also revealed that most of the sales in December can be traced to a wallet that bought Bitcoin over the summer.
Institutional investors accounted for a larger share of Bitcoin holdings in 2021, according to multiple reports, leading the price to exceed $ 69,000 after an annual rise of nearly 70%. According to Raoul Pal, CEO of Real Vision, the recent market downturn is a testament to the involvement of institutional investors in the market. In an interview with reporters, he claimed that institutional investors were selling their Bitcoins to block their profits.
While the big sale greatly affects the market price, it is a way of saying that they think they are being paid according to Pal. He also revealed that most of the sales in December are due to a wallet that bought Bitcoin over the summer. This is in line with the CoinShare report, which led to a significant increase in Assets Under Management (AUM) in May and October. At this time, the bears were all over the market, so it was profitable to liquidate their assets at this trading price. The starting point for the price of Bitcoin is whether or not institutional investors have finished selling their holdings.
They seem to have come to an end because the market has been in shambles for the past week, which was the norm last week when everyone squared their books, he said.
Institutional investors will invest in crypto again in 2022
Speaking about the price of Bitcoin in the coming year, Pal predicted that the market will start on a bullish note. Acknowledging that Asian investors may prolong the bearish streak, he is confident that institutional investors will return to investing in the cryptocurrency market. In 2022, adoption is expected to be very high, as other institutions have explored cryptocurrency technology this year. Noelle Acheson, Head of Market Insight at Genesis Trading, agrees with Raoul Pal, predicting that more institutions will inject their funds into Bitcoin in 2022.
Fred Schebesta, co – founder of Finder.com, recently revealed that the cryptocurrency race will continue until 2022, and that Bitcoin has good potential to beat six figures. According to him, altcoins like Terra Luna will have a good year too.
The good times keep rolling. The one I am looking at now is Terra Luna. I think Terra Luna is a very interesting coin because she has a decentralized algorithmic stable.
Interestingly enough, Schebesta also predicted a massive cooling in a year around this time. Bitcoin is currently priced at around $ 46,000 with a market capitalization of $ 888 billion. In addition, their market dominance has been reduced to 40 percent, reflecting strong interest in altcoins, as companies like Ethereum and Binance are gaining some Bitcoin market shares.