The popular digital asset lost an average of 85% in the course of its four previous big corrections, which made an analogous decline from its record peak an expected event for the majority of the financiers.
However, Boris Hristov, BTC and tech analyst, claims that the bearish market might have the potential to continue much longer comparing to the preceding corrections.
A huge number of financiers in the cryptomarket have probably already found out about the version that institutional financiers will enter the market and bring along a price increase for the dominant cryptocurrencies such as BTC, as this story has been carelessly promoted since the beginning of 2017.
Retail financiers or individual cryptotraders that encountered a major loss in the wake of the cryptomarket’s crash previously this year most likely will not return in the upcoming future, as they have not just lost out in the financial aspect, but also in psychological, facing against a major shock, which affected the newcomers most of all.
In the event that institutional financiers are the class of financiers, which might have the chance to bring forward the following middle term upside movement of BTC, Hristov claims that only a small range of institutional financiers possesses the necessary means to finance the cryptomarket.
Usually, institutional financiers would contribute their funds to an asset class of high risk via a heavily reulated and compliant custodian or an OTC market. Bitcoin’s infrastructure is currently being solidified by Coinbase Custody, BitGo Custody, and Fidelity Digital, to name a few.
The participation of big financial organizations, such as Fidelity and Goldman Sachs have yielded certain good changes in Bitcoin’s institutional sector. Nevertheless, takin into account that more than 50 billion dollars might be required to push forward an upside movement of Bitcoin from a low value range to the 20,000 USD region and the fact that Bitcoin takes longer time with each subsequent big correction, the digital asset might take a longer time to recover than anticipated by the financiers.