Recently, interest in Bitcoin has grown due to increasing institutional investments. However, analysts also warn of potential risks to the market.
Increase in Institutional Investments
David Bailey, entrepreneur and Bitcoin adviser to US President Donald Trump, believes that there will not be another bear market for Bitcoin in the coming years. He emphasizes that there is significant interest from institutions like banks and pension funds. Bailey states, 'We are seeing real institutional interest that has begun in earnest, and this is just the beginning.'
Reasons for Possible Bear Market
Despite the growing interest in Bitcoin, there are many factors that could negatively impact the market. One such factor is the correlation of cryptocurrencies with the stock market. CK Zheng from ZX Squared Capital noted that if the stock market enters a bear cycle, cryptocurrencies will likely follow suit. Analysts have also mentioned the potential for a bear market due to the instability of certain companies with crypto treasuries.
Odds of Ending Bear Markets
Despite the risks, some experts suggest that a bear market may not arise in the near future. Ryan McMillin from Merkle Tree Capital believes that there is a chance of no bear market occurring if the market continues to grow without deep corrections. He states, 'If this cycle continues to be accompanied by periods of consolidation, then there will be no bear market.'
At this time, the Bitcoin market faces numerous factors that could lead to changes. While some analysts offer optimistic forecasts, significant risks remain, necessitating careful monitoring of the situation.
