Analysts explained in which case large investors will want to get rid of crypto assets in order to lock in profits
The February record of bitcoin at the level of $ 58.3 thousand analysts explain the interest in cryptocurrency from large investors. Tesla said it has invested $ 1.5 billion in Bitcoin, followed by MicroStrategy and The Motley Fool. According to the forecast of The Motley Fool, in the long term, the main cryptocurrency will rise in price 10 times from current levels.
It cannot be ruled out that in the near future, large players will begin to leave the crypto market and get rid of the purchased bitcoins, which will affect the quotes. According to cryptanalyst Willie Wu, the recent bitcoin correction began due to the fact that traders mistakenly linked its movements from address to address with the desire of large holders to get rid of the asset en masse. This killed the bullish trend that lasted until the end of February, Wu noted.
Not only profit
Large companies, investment funds and billionaires are showing interest in cryptocurrency not only because of profits, says Artem Deev, head of the analytical department at AMarkets. According to him, they are attracted by the status of a protective asset that bitcoin acquired during the pandemic. The fall in stock indices forced investors to invest in gold and bitcoin.
“Now the situation is extremely unstable – investors, hoping for the recovery of the global economy, are shifting into securities, but, on the other hand, the threat of exchange bubbles is brewing. Some investors may start to withdraw from cryptocurrencies, fixing profits, which will lead to a sharp decline in digital assets, "Deev said.
Some investors can take advantage of the situation to buy digital coins when the price for them drops as much as possible, the analyst predicts. In the future, for 2-3 years, bitcoin, as a protective asset, can double in price, added Deev. Investors who have already acquired it can keep it in their portfolios for 10 years or even more, says Nikolay Klenov, financial analyst at Raison Asset Management investment company. He noted that companies will not get rid of bitcoin as long as they see the prospects for its growth.
Waiting for the exit
According to Artem Deev, now the market is waiting for who will be the first to decide to exit the cryptocurrency. After that, he expects a frenzied sale and a collapse in the value of bitcoin. There is another scenario, the expert notes, if a correction begins in the financial markets. Then bitcoin will rise in price.
Michael Ross-Johnson, CEO of the cryptocurrency p2p platform Chatex, finds the same scenario likely. He believes that the panic in the crypto markets as a result of massive sales of bitcoin by large investors will lead to the fact that its value will drop to $ 10 thousand. Ross-Johnson called this scenario "crypto winter".
The head of Chatex noted that "hype" companies, which are mainly supported by innovators, have invested in bitcoin. More conservative organizations are not yet ready to enter the cryptocurrency market. Moreover, according to Ross-Johnson, conservative investors are not interested in the value of bitcoin, since they do not consider it as an asset. The Chatex CEO named the most likely scenario in which new players will not invest in bitcoin, and cryptocurrency holders will gradually sell coins and fix profits.