Bitcoin prices are locked in between $80,000 and $100,000, and some analysts believe that institutional recruitment behaves differently than past cycles.
Speaking to TheStreet Roundtable, Bitdeer’s capital markets head Jeff Laberge explained that Bitcoin’s increasing traditional financial presence has changed the way it responds to market turbulence.
“Before, Bitcoin was really hard to buy. It was hard to buy, it was hard to sell for individuals, people other than Bitconner, right? But now it’s in people’s portfolio. That’s an ETF,” says Laberge. “Because there’s a future, it’s much more liquid. And again, it can be used much more like a risk-on, risk-off asset.”
Nelson noted that many longtime Bitcoin investors are hoping to follow half of the four years. However, he said that new Bitcoin investors are responding to the global economic situation, viewing it as merely another asset in the portfolio.
“They are watching the traditional financial world go south. Bitcoin is still part of the Tradfi world in their heads. It’s a new asset in their portfolio,” Nelson said. “So, when everything gets bad, where are my escape valves? It’s gold. They don’t go, “My escape valves are sitting in my portfolio of bitcoin.”
Laberge agrees, noting that Bitcoin has a strong long-term tailwind, but the short-term uncertainty of the economy is affecting its prices.
“We have to work through some of the economics now. We know that Bitcoin is sensitive to everything,” he said. “Some of these things could be lifted up and we could quickly see a rather sharp rebound.”
As for Bitcoin’s price outlook, Nelson maintained his belief that it would not fall below $80,000 and ultimately push beyond $100,000, but not before the fall.
“Here we can guess all day long about how Bitcoin prices will respond,” Laberge added. “But again, all the tailbones behind it are very bullish in the long run.”