Raoul Pal, the CEO of Real Vision, believes the recent slump in the Bitcoin (BTC/USD) market is a result of profit-taking by institutional investors. Pal said this during an interview on December 27, adding that institutions have been selling their crypto holdings to lock in their profits. According to him, this is a way for institutions to say they believe in getting paid.
In the interview, Pal pointed out that much of the selling in December was from wallets that purchased the flagship cryptocurrency in summer. Per CoinShares, institutional assets under management (AUM) of crypto increased in May and October when bears were dominant in the crypto market. As such, it is not alarming to see institutions liquidate their holdings, seeing as most are still in profits.
@RaoulGMI answers fast. Not this time. He needed 6 seconds before answering “Why #DAO is so sexy” but the answer was brilliant.
Less than 30 minutes until the premiere starts. Today, at 19:00 CET, on our Youtube channel:https://t.co/lq96tZHfwq@Arscryptopia @stakeborgdao pic.twitter.com/4rgIev1XLw
— StakeBorgDAO (@stakeborgdao) December 26, 2021
Convinced that institutional investors are driving the current bear market in crypto, Pal said the important question is whether they have finished selling their assets.
Sharing his opinion on the matter, he said,
It looks like they’re done because the market has been chopping around for the past week, which was the traditional last week of everybody squaring their books.
2022 will start on a bullish note
Although Pal believes Asian investors could extend the bear market, he claims 2022 will start with a bang as institutions redeploy their capital in the crypto market. According to him, institutional investors will become increasingly bullish on crypto through the coming year as they begin understanding the increasing adoption of the technology.
Like Pal, Noelle Acheson, the Head of Market Insights at Genesis Trading, believes 2022 will be a phenomenal year for crypto because more institutions will inject their funds into the nascent asset class.
Focusing on the institutional growth in the crypto market over the past year, Acheson said,
“The institutional growth over the last 12 months has been astonished. We’re seeing strong signs of that accelerating over the next year,” says @NoelleInMadrid on trends for #crypto and #bitcoin in 2022. pic.twitter.com/5GMR59S0ie
— Squawk Box (@SquawkCNBC) December 28, 2021
At the time of writing, Bitcoin (BTC), the leading cryptocurrency by market capitalization, is changing hands at $47,710.82 ?35,518.08) after plunging 3.02% over the past 24 hours.
This news comes after multiple experts, including JPMorgan Chase, predicted that BTC would hit $100,000.00 (?74,444.50) before the end of the year and trend even higher in 2022.
While BTC has not yet notched even $70,000.00 (?52,111.15) it remains to see what 2022 has in store for the cryptocurrency, considering BTC’s current level represents a 42% gain since the start of the year.
Raoul Pal says institutions are done taking profits as 2021 winds up appeared first on .
