Summary
- Adam Back said the recent decline in Bitcoin (BTC) prices represents a price-correction phase consistent with the historical four-year market cycle.
- He said the current volatility reflects the asset’s inherent volatility rather than a flaw in the Bitcoin theory.
- Back said ETF holders are more loyal than individual Bitcoin traders, and that institutional investors can respond to downturns through portfolio rebalancing.
Adam Back, CEO of Blockstream, assessed the recent decline in Bitcoin (BTC) prices as consistent with the historical four-year market cycle.
According to CoinDesk, a digital-asset (crypto) industry publication, he said at the iConnections conference in Miami that "in light of the historical four-year cycle, we are now in a phase of price correction," adding, "volatility like this is not surprising. It reflects the asset’s inherent volatility rather than a flaw in the Bitcoin theory."
He added, "some market participants may be trading based on past price patterns rather than fundamentals," emphasizing that "volatility is an essential part of the Bitcoin market."
He also noted differences in behavior by investor type. Back said, "ETF holders are more loyal than individual Bitcoin traders," explaining that "retail investors tend to deploy capital when prices rise, which limits their capacity to add exposure during downturns.
By contrast, institutional investors can respond through portfolio rebalancing."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
