Mr. Catastrophe: The Bitcoin crash is the end of institutional profits, but the sell-off may be over

Bitcoin (BTC) has been in a sluggish performance recently. After falling below US$50,000 yesterday, it further fell below the US$48,000 mark today, reaching a minimum of US$47,313. So far in December, Bitcoin has fallen by about 16%, which is a record. Worst monthly performance since May.

Former Goldman Sachs executive and financial media Real Vision founder Raoul Pal (Raoul Pal) accepted an interview with the Youtube channel The Stakeborg Talks on the 27th that the recent fluctuations in the price of Bitcoin were due to the sale of Bitcoin by institutions to help support Its year-end profit.

Parr believes that due to institutional influence, the current market is in an imbalanced state. He pointed out that institutions have been selling to lock in profits, which is a way for institutions to express their belief that they can make profits.

Data on the chain shows that most of the sell-off in December came from wallet addresses that hoarded Bitcoin around the summer. According to previous data from Coinshares, the size of the institution's cryptocurrency asset management (AUM) soared in May and October. Therefore, The timing of the sell-off does indicate that institutions are selling some positions.

But Pal said that the institutional sell-off may be over: The question now is, is their sell-off over? It looks like they are over, because the market has been fluctuating in the past week, and the last week has always been a week when everyone is sorting out their books.

Bullish on the cryptocurrency market next year

Although Pal predicted that there may be further selling in the Asian market, as the new year is approaching, he is optimistic that with the reconfiguration of institutional capital, the cryptocurrency market will have a strong start in 2022.

Noelle Acheson, director of market analysis at Genesis Global Trading, a digital asset trading service provider, also agreed with this view. She shared Pal’s views on the bullish cryptocurrency next year by relevant institutions in CNBC on the 28th, and discussed the institutions in 2021. Trends, and mention some potential bright spots in 2022.

Acheson pointed out: The growth of institutional investment in the past 12 months has been amazing. We see strong signs that through direct investment and investment in infrastructure companies, this growth will continue to accelerate next year.

Acheson pointed out that in 2021, 40 cryptocurrency companies have become unicorns, and institutional investors are expanding their interest from Bitcoin and Ethereum to smaller and more risky cryptocurrencies. In order to achieve the purpose of diversification of the investment portfolio.

Pal's Ethereum prediction is about to be inaccurate?

Pal has always been optimistic about the prospects of the cryptocurrency market. He predicted in October that the growth rate of the cryptocurrency market will be faster than that of the Internet era. Compared with other assets, the value of the cryptocurrency market has 100 times more room for growth. This will be The era of the greatest wealth seen in the shortest time.

Parr also predicted on November 2 that the current wave of cryptocurrency bull market will continue until March to June 2022. Bitcoin is expected to rush to more than US$250,000. However, during this period, there will be two major events caused by the sell-off. Crash, and will be led by Ethereum and ETF rebound.

However, it is worth noting that one of Pal's predictions may be about to be inaccurate. At the end of last month, Pal predicted that Ethereum will be close to US$15,000 by the end of this year and will reach US$20,000 by March next year at the end of last month. However, the current price of Ethereum is only $3,805, and there are only 2 days left before the end of this year.