Macro guru and Real Vision CEO Raoul Pal told Vlad from The Stakeborg Talks in a December 27 interview that Bitcoin’s recent price volatility was caused by institutional selloffs trying to bump up the end-of-year profits. This could indicate that January will bring some new fireworks.
In order to lock in their profits, Pal said, institutions made a move and went on selling. Backed by Glassnode data showing that those wallets that purchased Bitcoin in the summer, were now selling, he said it was essentially them saying: “I believe in getting paid.”
Pal then asked the question:
“Now the question is, ‘Are they done?’”
Answering himself, he stressed:
“It looks like they’re done because the market has been chopping around for the past week, which was the traditional last week of everybody squaring their books.”
Expressing some caution that the December bottom may not have been reached yet, Pal expects 2022 to start of strong, with institutions reinvesting their capital in the crypto markets. He said:
“Could have another leg lower, potentially… Could that come out of Asia, which is where a lot of the selling has also come from?
Again, possibly… but the probability is that next year ends up seeing a strong start.”
Combined with a better understanding of Bitcoin’s potential, the Real Vision is confident that institutional investors will grow increasingly bullish throughout the coming year.
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Source: Igaming
