The sharp fluctuations in Bitcoin (BTC) prices may be a thing of the past, according to the popular cryptocurrency whale, as institutional buyers with strong hands continue to push the asset higher.
Eric Peters, founder and CEO of One River Asset Management, told Bloomberg Thursday that Bitcoin’s path to maturity will help stabilize price.
“There are all kinds of reversal dynamics in these assets, which, ironically, will lead to less volatility the higher it is,” he said. “As prices rise, you are attracting new investors with stronger hands.”
One River Asset Management has raised more than $ 600 million in BTC. The asset manager plans to acquire approximately $ 1 billion in Bitcoin and Ether (ETH) by the first half of this year.
Volatility has played a major role in Bitcoin since the major cryptocurrency was launched in 2009, but the intensity of price fluctuations has decreased dramatically over the years. With the exception of the liquidity crisis in March 2020, Bitcoin’s daily volatility has not exceeded 10% since 2013. Daily volatility has only exceeded 7% several times since 2016, according to Bitpremier.
Peters believes that institutional buyers will play an increasingly important role in boosting Bitcoin development and preventing the massive price fluctuations seen in the past.
He told Bloomberg:
“Almost every major lending institution in the United States is discussing this issue.”
Goldman Sachs, the US financial institution that has harshly criticized Bitcoin in the past, has admitted that the digital asset is beginning to mature. However, long-term stability will depend on broader institutional acceptance.
Jeff Carey, the bank’s global head of commodity research, recently told CNBC that Bitcoin still needs to attract smart money investors to help stabilize the market.
In the short term, it doesn’t seem like the institutional adoption will be enough to keep the bitcoin price above $ 30,000, according to Guggenheim chief investment officer Scott Minerd. Despite the seemingly bearish short-term outlook, Minerd still describes Bitcoin as a viable long-term asset.