- Bitcoin price remains under pressure and experts believe institutions won’t re-enter crypto markets in the short term.
- The recent turn of events following the FTX-crash and bankruptcy filing has raised concerns of low volatility in cryptocurrencies.
- Experts argue that institutional investors are sitting on the sidelines and less likely to pour capital into cryptocurrencies during the bear market.
Bitcoin price is likely to plummet lower as institutional investors pull capital out of crypto. Experts believe it is likely that institutions and large-wallet investors are less likely to enter crypto markets in light of the FTX-crash and reduced volatility in cryptocurrencies.
Also read: Tom Brady, Stephen Curry and Golden State Warriors slammed by lawsuit over FTX endorsements
Large-wallet investors stay wary of contagion risks post FTX-induced crash
As the recent spike in Bitcoin price volatility subsides, experts believe institutions are less likely to re-enter crypto markets with significant force yet. Institutional investors have been wary of the recent volatility in the crypto market.
Samuel Bankman-Fried’s FTX exchange crash and the subsequent bankruptcy filing triggered a bloodbath in cryptocurrencies. Bitcoin price declined 13% within ten days. BTC price hit a bottom of $15,900 before recovering to the $16,500 level.
The magnitude of Bitcoin and Ethereum price movements has been declining since January 2022. Since a lack of price movement gives investors less opportunity to generate gains, declining volatility pushes large volume traders out of the crypto market.
Prior to the FTX crash, Bitcoin price ranged between $19,000 and $20,000. Post the FTX bankruptcy, BTC is exchanging hands around the $16,500 level. Ben McMillan, CIO of crypto index provider IDX Digital Assets, was quoted as saying:
Right now, most of the institutional investors we talk to are content to sit on the sidelines and just wait...they haven't sworn off the space, but they're not doing anything in crypto right now especially against this macro backdrop.
McMillan believes crypto investors are currently anxious about future developments that could send crypto markets spiraling further. Traders are waiting for Bitcoin price to find its bottom. Experts believe that the price is closer to the bottom of the cycle for Bitcoin and other cryptocurrencies.
RektCapital, a crypto analyst and trader, noted that it has been 365 days since the Bitcoin bull market peak at $65,000. The analyst believes that the bear market is close to ending and historically, BTC bear markets tend to find their absolute bottom price approximately a year after hitting an all-time high.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.