According to a leading crypto whale, bitcoin’s drastic price fluctuations can be a thing of the past as institutional buyers with stronger hands push BTC higher.
“Bitcoin volatility will decrease further over time.”
“Bitcoin’s path to maturity must help balance its price,” Eric Peters, founder and CEO of One River Asset Management, told Bloomberg on Thursday.
“There are all kinds of reflexive dynamics in these assets that will lead to less volatility as the price goes up. As prices rise, you attract new types of investors with stronger hands. ”
One River Asset Management has accumulated over $ 600 million in BTC. The asset manager expects to own about $ 1 billion worth of Bitcoin and Ethereum (ETH) in the first half of this year.
Volatility has been at the center of the industry since the flagship cryptocurrency was launched in 2009, but the intensity of price movements has declined significantly over the years. Except for the March 2020 liquidity crisis, Bitcoin’s daily volatility has not exceeded 10% since 2013. Since 2016, daily volatility has overshadowed 7% only a few times, according to Bitpremier data.
“Most institutional firms argue about BTC”
Peters believes institutional buyers will play an increasingly vital role in helping Bitcoin mature and avoiding major price fluctuations seen in the past.
Peters told Bloomberg:
“Almost every big, reliable institution in the US is having discussions about it.”
Goldman Sachs, a US financial institution that has criticized Bitcoin in the past, even admitted that the digital asset is beginning to mature. However, long-term stability will undoubtedly depend on greater institutional adoption.
Jeff Currie, the bank’s head of global commodities research, recently told CNBC that Bitcoin should attract smart money investors to stabilize the market.
According to Scott Minerd, chief investment officer of the Guggenheim, corporate adoption in the short term is unlikely to keep the price of Bitcoin above $ 30,000. Despite his poor short-term views, Minerd described BTC as a viable asset in the long run.