Experts believe that Bitcoin's cycles continue to impact its price, despite growing institutional adoption.
Bitcoin Cycles and Institutional Adoption
Seamus Rocca, CEO of Xapo Bank, states that Bitcoin cycles remain relevant despite significant institutional acceptance. He noted in an interview, ‘Many people say: “Oh, institutions are here, and therefore the cyclical nature of Bitcoin is dead.” I am not sure I agree with that.’
Risks and Future Correction Scenarios
Rocca believes that the next correction could be triggered by a simple slowdown in interest in cryptocurrencies rather than catastrophic events. He warned of an ‘organic’ rollback scenario: ‘The contagion effect could be as simple as no news on the market.’ Companies heavily investing in Bitcoin via debt may exacerbate the ensuing crisis.
Conclusion: Real Threats for Investors
Despite the increasing number of institutional investors and new all-time highs, Rocca emphasizes that Bitcoin remains a speculative asset. If companies continue to finance their Bitcoin purchases mainly through equity, the risk of a widespread catastrophe may diminish.
Investors should be prepared for potential market changes, as Bitcoin's cycles and human psychology remain unchanged.
