- In a recent interview, Raoul Pal stated that institutional investors have been selling their Bitcoins to lock their profits.
- He also disclosed that most of the selling in December can be traced to wallets that purchased Bitcoin in the summer.
Institutional investors accounted for a larger share of Bitcoin holdings in 2021 according to multiple reports, sending the price to an all-time high of near $69,000 after a nearly 70 percent yearly surge. According to Raoul Pal, the CEO of Real Vision, the recent market pullback is evidence of market involvement by institutional investors. In an interview with reporters, he stated that institutional investors have been selling their Bitcoins to lock their profits.
Though the large sell-off greatly affects the market price, it is a way to say they believe in getting paid according to Pal. He also disclosed that most of the selling in December can be traced to wallets that purchased Bitcoin in the summer. This is in line with the CoinShare report that Assets Under Management (AUM) saw a significant increase in May and October. At this point, bears were all over the market, so they found it profitable to liquidate their assets at this trading price. The turning point of the Bitcoin price lies in whether institutional investors have finished selling their holdings.
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, he said.
Related: Bitcoin loses more ground as December sets up to be its worst month since May
Institutional investors will reinvest in crypto in 2022
Speaking on the Bitcoin price in the coming year, Pal predicted that the market will start on a bullish note. Having recognized the fact that Asian investors could still extend the bearish run, he is strongly convinced that institutional investors will reinvest in the crypto market. In 2022, the adoption is expected to be very high as the crypto technology has been explored by other institutions this year. Noelle Acheson, the Head of Market Insights at Genesis Trading, also agrees with Raoul Pal, predicting more institutions will inject their funds into Bitcoin in 2022.
Recently, Fred Schebesta, co-founder of Finder.com, revealed that the crypto bull-run will continue in 2022, and Bitcoin has a good potential to hit six figures. According to him, altcoins like Terra Luna will also have a good year.
The good times are still rolling. The one I’m looking at right now is Terra Luna. I think Terra Luna is a fascinating coin because it has a decentralized algorithmic stablecoin attached to it.
Interestingly, Schebesta also predicted that there will be a massive cool-off in a year by this time. The Bitcoin price is currently hovering around $46,000 with a market cap of $888 billion. Also, its market dominance has decreased to 40 percent, indicating a strong interest in altcoins as the likes of Ethereum and Binance are taking some of the market shares of Bitcoin.
Related: Raoul Pal: Bitcoin will become the best-performing asset in the world
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