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Bitcoin Might Take a Bearish Turn Says One Of China’s Top Miners

Bitcoin Might Take a Bearish Turn Says One Of China’s Top Miners

In an interview with Chinese journalist Colin Wu (@WuBlockchain), Jiang Zhuoer, a Chinese bitcoin miner, said that bitcoin might turn bearish as the traditional economy recovers. 

Wu took to Twitter to summarize his interview, saying,

Jiang Zhuoer, one of China's big miners, told WuBlockchain that according to the latest multiple model studies, the fastest will be September 2021 and the slowest June 2022 will turn from a bull to a bear market.

Wu says that several Chinese blockchain company CEOs believed that the cryptocurrency might turn into a bear market as early as autumn 2021. With Covid vaccines gaining popularity and the beginning of a shift in the US monetary policies, traditional economies are foreseeing a promising return to normalcy. This will take the attention away from cryptocurrencies.

Large Institutions Can Help Retain Bull Market

Wu points out that after Tesla’s purchase of $1.5 billion in Bitcoin and Meitu’s $90 million investment in Bitcoin and Ethereum, no other large institutions listed in North America and Asia have contributed in such a significant manner. 

However, there are also opinions that if more traditional large institutions buy Bitcoin and Ethereum, the bull market may continue for a longer period of time, or even the next round of halving.

Is There Institutional Interest In Crypto?

Wu’s opinion corresponds with predictions based on the previous market cycles of the cryptocurrency. Bitcoin bull markets have lasted around two years, as seen. However, many institutions have been stepping into the blockchain ecosystem and stepping up their crypto-activity.

Bank of New York Mellon, America's oldest bank, announced its plans to leap into the cryptocurrency market. Goldman Sachs, the banking giant, reopened its crypto traditions desks. Institutional interest exists and can be seen in the rise of exchange-traded funds (ETFs). This might just rescue BTS from turning into a bear market. 

Can Bitcoin Break Traditional Market Records ?

Wu states that companies would rather focus on the recovery of the post-Covid economy instead of cryptocurrency. But cryptocurrency has generated immense interest during the pandemic and is still seeing a market-surge. As per suggestions from community members, it might be the mark of a new cycle. 

Developments like these are expected in a surging market. A bull market might last for a few years before entering a corrective phase. This is where the institutional interest can enter the arena and prolong optimism for the bitcoin market. This will sustain the market’s demand as the cryptocurrency has a supply shortage and pushes the bitcoin market to new heights. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.