{"id":150213,"date":"2021-01-08T21:04:20","date_gmt":"2021-01-08T18:04:20","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-bull-run-could-end-if-institutions-go-under-komodo-exec-speculates\/"},"modified":"2021-01-08T21:04:20","modified_gmt":"2021-01-08T18:04:20","slug":"bitcoin-bull-run-could-end-if-institutions-go-under-komodo-exec-speculates","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-bull-run-could-end-if-institutions-go-under-komodo-exec-speculates\/","title":{"rendered":"# Bitcoin bull run could end if institutions go under, Komodo exec speculates"},"content":{"rendered":"

“# Bitcoin bull run could end if institutions go under, Komodo exec speculates <\/strong>”
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Famous for its volatility, Bitcoin\u2019s price constantly waffles both north and south. While it recovered quickly from its pandemic-induced drop in March 2020, going on to break record highs, that doesn’t mean the asset is bulletproof against a similar event in the future. The director of business development for smart chain platform Komodo, Jason Brown, recently weighed in on what could possibly cause another COVID-19-style price decline for Bitcoin (BTC).<\/p>\n

\u201cI think such a scenario is unlikely given the current uptrend in institutional adoption,\u201d Brown told Cointelegraph. \u201cOn the other hand, we couldn\u2019t have predicted that COVID would have caused such an abrupt crash and short-term bear market followed by the subsequent bull run that started in the summer of 2020.\u201d<\/p>\n

March 2020 saw Bitcoin plummet 50% inside 48 hours\u00a0alongside similar slides in other traditional markets.\u00a0Since then, a number of mainstream giants, such as MicroStrategy and MassMutual, have unveiled massive U.S. dollar allocations to Bitcoin. MicroStrategy, in particular, under its CEO Michael Saylor, has become a big proponent of Bitcoin, in part as an act against inflation. \u201cInstitutions clearly have a long-term HODL mindset and aren\u2019t speculating,\u201d Brown said.<\/p>\n

Plans can change, however, when people or companies need to spend capital to stay afloat. \u201cThe potential challenge is what happ<\/a>ens if the institutions themselves go under, even if it\u2019s related to factors outside of the current crypto market,\u201d Brown explained. <\/p>\n

Given Bitcoin\u2019s recent\u00a0advancement past $41,000, buying now means buying into all-time high prices. Big players loading up on crypto are doing so at higher than average price levels, Brown explained. \u201cThis means we could see a scenario in which an institution is in a financial crunch if crypto prices are declining or stagnant, and thus they decide to sell below market averages,\u201d Brown said, adding:<\/p>\n

\u201cAlthough highly theoretical and unlikely, this could cause a cascade effect in the opposite direction and send us back to a bear market. We used to talk about how whales (high net worth individuals) move the market, but now the total supply of top cryptocurrencies is even more centralized. In the future, all it might take is one really large sell-off from one major institution to have a noticeable impact on the market \u2014 even more so than the bear market that began in 2018.\u201d<\/p><\/blockquote>\n

Bitcoin\u2019s 2018 bear market saw prices fall from $17,000 down to below $4,000. <\/p>\n