According to Raziel, it is very unlikely that Bitcoin will drop to those low levels that some mention. The fundamental reason has to do with how the structure of the cryptocurrency market has completely evolved over the past few years.
Markets Have Changed: Less Volatility with Institutions Present
When previous declines occurred, they were natural correction adjustments in a still very young market. Today, the situation is completely different. Those who think Bitcoin could collapse to such depressed prices are not considering a key factor: the current market composition.
A few years ago, there were no large institutional investors or major corporations dominating this space. Wall Street was also not significantly involved in digital assets. The current reality presents a radically different landscape.
Investors and Wall Street: The New Support for the Market
Currently, the Bitcoin market is supported by financial institutions, large independent investors, and Wall Street participation. These actors would never allow the market to suffer a massive collapse, as it would significantly destroy their own economies and investments.
The presence of these institutional forces has created a floor of stability that did not exist before. Large capital has direct economic incentives to prevent a systematic crash from happening.
The Case of Bitcoin at $50,000: Is It Realistic Today?
Raziel believes that it is possible for Bitcoin’s price to experience a decline, but definitely not down to those very low values. For Bitcoin to again reach the $50,000 range, significant economic events equivalent to a temporary economic collapse would have to occur.
However, given the current economic and political context of the world, a collapse of that magnitude seems unlikely in the short term. The relative stability of the global financial system suggests that prices will stay within higher ranges, precisely protected by the network of investors and institutions that currently support this market.
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Raziel's Perspective on Bitcoin: Drop to $50,000? Institutional Market Analysis
According to Raziel, it is very unlikely that Bitcoin will drop to those low levels that some mention. The fundamental reason has to do with how the structure of the cryptocurrency market has completely evolved over the past few years.
Markets Have Changed: Less Volatility with Institutions Present
When previous declines occurred, they were natural correction adjustments in a still very young market. Today, the situation is completely different. Those who think Bitcoin could collapse to such depressed prices are not considering a key factor: the current market composition.
A few years ago, there were no large institutional investors or major corporations dominating this space. Wall Street was also not significantly involved in digital assets. The current reality presents a radically different landscape.
Investors and Wall Street: The New Support for the Market
Currently, the Bitcoin market is supported by financial institutions, large independent investors, and Wall Street participation. These actors would never allow the market to suffer a massive collapse, as it would significantly destroy their own economies and investments.
The presence of these institutional forces has created a floor of stability that did not exist before. Large capital has direct economic incentives to prevent a systematic crash from happening.
The Case of Bitcoin at $50,000: Is It Realistic Today?
Raziel believes that it is possible for Bitcoin’s price to experience a decline, but definitely not down to those very low values. For Bitcoin to again reach the $50,000 range, significant economic events equivalent to a temporary economic collapse would have to occur.
However, given the current economic and political context of the world, a collapse of that magnitude seems unlikely in the short term. The relative stability of the global financial system suggests that prices will stay within higher ranges, precisely protected by the network of investors and institutions that currently support this market.