Buoyed by continued institutional investment, Bitcoin is clawing its way back from one of the largest liquidation events in the industry’s history.
And according to Kyle Chassé, founder of venture capital firm MV Global, the $2.2 billion asset is even on track for new highs this year.
It “may take a week or two for markets and order books to return to equilibrium, but they’ll recover and continue to exceed all-time highs,” he told DL News.
With spot exchange-traded funds “pulling coins off the market,” he added, “institutions are now the steady bid.”
Over the past two weeks, Bitcoin ETFs have still attracted $5.7 billion in net inflows, according to data collected from SoSoValue.
“Black Friday just reminded everyone how Bitcoin trades: quick sell-off, quick reset.”
And Chassé is not the only optimistic voice.
Seasonal tailwinds
Farzam Ehsani, CEO of crypto trading platform VALR, pointed out that despite the steep crash, liquidity did not completely exit the crypto markets.
Ehsani noted that stablecoin liquidity also crossed $300 billion in circulating supply.