- Bitcoin’s correction might actually be beneficial.
- Exec advocated for HODLing BTC.
In a recent sharp pullback, Bitcoin [BTC] has shed some of its value from record highs. Despite this, the cryptocurrency remains up approximately 60% year-to-date (YTD).
AMBCrypto previously reported how BTC’s price dropped below $70,000 after surging past $73,000, causing significant liquidations.
Kris Marszalek, CEO of Crypto.com, provided insights into the situation during an interview with CNBC TV. He explained,
“I think this is predominantly driven by what’s happening in the options market and a correction, but you have to remember that this level of volatility is actually pretty low compared to what we’ve seen in previous cycles.”
The king coin recovered some of its losses at press time, trading at $68,967.31. This marked a 2.47% increase over the day, as per CoinMarketCap.
The silver lining in Bitcoin’s price drop
Marszalek views the price drop as a beneficial correction for the cryptocurrency market. He believes it helps to eliminate excessive leverage, preventing overly aggressive price spikes.
According to the exec, the goal is to encourage steady capital inflows into Bitcoin and the broader industry, which could lead to more gradual and sustainable growth. Emphasizing the long-term value of Bitcoin investment, he stated,
“Bitcoin is an asset you want to hold for decades, not days or weeks.”
$7.5 trillion crypto market cap by 2025?
Adding to the bullish sentiment, analysts at Bernstein have forecasted that the total market capitalization of cryptocurrencies could potentially triple, reaching $7.5 trillion by the end of 2025.
This significant growth is expected to be driven by what Bernstein describes as “unprecedented” levels of institutional engagement with cryptocurrency. Marszalek concurred with this positive outlook, remarking,
“I think the move is predominantly driven by the inflows from the Bitcoin ETFs. This is a very successful product, and you know there’s a problem on the supply side, so it has to be reflected in the price.”
ETFs continue to break records
But what does the future look like for Bitcoin ETFs? Given the current trends and projections, the pathway ahead seems promising. JMP Securities predicted that the spot ETFs could draw approximately $220 billion in investor capital over the next three years.
Should their projections hold, the implications for Bitcoin’s value are substantial, with JMP Securities estimating a potential increase in price to $280,000—this would expand the market capitalization of the leading cryptocurrency by an additional $5.50 trillion.
The surge in interest towards spot Bitcoin ETFs is evident from their record-breaking inflows, which surpassed $10 billion two months after their launch in January.
Moreover, BitMEX Research noted net inflows of 14,706 BTC, valued at over $1 billion, into spot Bitcoin ETFs on 12th March alone.
