The head of investment fund Sigma Capital named the reason for Bitcoin's decline.
Vineet Budki, head of venture capital firm Sigma Capital, stated that investors still don't understand Bitcoin and dump it at the slightest correction, putting pressure on the price of the leading cryptocurrency.
According to the businessman, Bitcoin will continue to move cyclically—periods of rapid rallies will alternate with deep corrections, potentially reaching 70% in the next phase. In the next few years, there's even a risk of a 65% price reversal for the leading cryptocurrency.
“Bitcoin won't lose its usefulness even if it falls to $70,000. The problem is that people don't understand its value. When investors buy an asset they don't understand, they're the first to sell it—hence the pressure on the price,” Budki explained.
The entrepreneur predicted that Bitcoin's price could surpass $1 million within ten years. The cryptocurrency's widespread adoption is a result not only of speculative interest among traders but also of the active participation of major investment funds.
The coming years will test the crypto industry's maturity—only projects with real value and a transparent economy will survive; digital assets will cease to be exotic, and those who learn to work with them today could become leaders of the new economy, Budki concluded.
Previously, experts from the Glassnode platform reported that Bitcoin had failed to consolidate above the key level of $113,000, and in the short term, the leading cryptocurrency risks falling to $88,000.
Source: cryptonews.net
