Summary
- Adam Back said the recent Bitcoin price decline is a price-correction phase consistent with the historical four-year market cycle.
- He said the current volatility reflects inherent volatility in the asset, not a flaw in Bitcoin theory.
- Back said ETF holders are more loyal than individual Bitcoin traders, and that institutional investors can respond to downturns through portfolio rebalancing.
Forecast Trend Report by Period
Adam Back, CEO of Blockstream (BlBlockstream), recently assessed the latest drop in Bitcoin (BTC) prices as moving in line with the market’s historical four-year cycle.
According to crypto-focused media outlet CoinDesk on the 25th (local time), he said at the iConnections conference held in Miami, “Viewed through the lens of the historic 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 Bitcoin theory.”
He added, “Some market participants may be trading based on past price patterns rather than fundamentals,” and said, “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,” and explained, “Retail investors tend to deploy capital when prices rise, so their capacity to add more in a downturn is limited.
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.
