Is bitcoin roller coaster getting less scary?

The current bitcoin bull run could be much less of a roller-coaster ride for investors than 2017’s spectacularly volatile ascent from $1,000 to $20,000.

Institutions scooped up a lot of bitcoin in the $12,000–$15,000 range, according to the blockchain analytics firm Whalemap. This trend is positive because institutions and whales normally purchase assets with a view to holding them for a long time.

Also, institutions, unlike retail investors, are not highly prone to panic-selling in times of turbulence, which is conducive to a smoother ride to the top of the cycle.

Over the past month, the price of bitcoin has risen thousands of dollars. But its ascent has so far been much more incremental than in previous bull runs, which saw investors buckling their seatbelts and clenching their teeth in anticipation of a very rough ride.

This time, however, the trip to the top, assuming the bull run continues as predicted, might be much less stressful. Analysts including Real Vision’s Raoul Pal and MicroStrategy’s Michael Saylor believe the growing influx of corporate money will help to reduce bitcoin’s legendary price volatility over time.

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