NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Bitcoin Hits ATH Of $112,000, Expert Predicts Rally Is Just Beginning
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Bitcoin Hits ATH Of $112,000, Expert Predicts Rally Is Just Beginning

Prominent Investor: Crypto Bear Market Makes it Safe For Institutional Investors to Enter

Davit Babayan
Davit Babayan
1 year ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Institutional investors are pouring in big bags of their money into the crypto world. And, a prominent investor believes it is the rightest time to do so.

Garry Tan, co-founder of Initialized Capital, thinks crypto market’s bearish bias this year has reduced investment risks for new entrants, especially institutional investors. The 37-year old entrepreneur, who has invested in crypto startups like Coinbase in the past, said the money these institutions are injecting in cryptocurrency economy is as much same as an endowment might put into a core venture capital investment.

Bitcoin and the rest of the cryptocurrency market had a bullish year in 2017. But, as the industry moved to the subsequent monthly quarters, the gains began to fade away by huge margins. As a result, the total crypto market capitalization, which peaked to circa $795 billion the previous year, has now shrunk to $218 billion. That is around 72 percent loss in less than a year.

But, many analysts believe the bear market is bottoming out. Bitcoin, which is considered the locomotive of the entire cryptocurrency market, has found a strong support at around $6,000. Tan hints that many institutional investors have entered long positions around the said bottom, thinking it would be a safer strategy than opening positions on higher high formations.

It could mean that a big chunk of money will not move out of the Bitcoin market anywhere below $6,000, which means the same for each top coin’s bottom. For instance, Ethereum, the second largest cryptocurrency by market cap, has found its base near $200. Similarly, Ripple, Bitcoin Cash, EOS, Monero, and Litecoin are also in a rebound from their respective yearly lows.

Super confused at the fud about institutional investors coming into crypto funds.

Is it a big deal? Yes.

Is it a negligible amount? No. It’s as much as a given endowment might put into a core venture capital investment. That’s the kind of return they expect.

— Garry Tan 💥♻️ e/acc (@garrytan) October 7, 2018

Investors, however, continue to be in losses due to the underperformance of their crypto funds. The previous years witnessed the most significant number of crypto hedge fund deployments. Crypto market was very bullish due to ungrounded predictions of multi-million dollar growth. At the same time, many hedge fund managers overestimated the growth of their portfolio and spent millions of dollars worth of investors’ assets to speculate.

A report published in August by Autonomous Next revealed that the valuation of a majority of these crypto hedge funds dropped by more than 50 percent in the first half of 2018. The study blamed Ethereum’s bearish bias as the main catalyst behind the market’s dismissive performance.

“To use a project on the Ethereum platform, users have to buy and pay with a third-party token that was issued primarily for fundraising. They third-party ETH to pay for the service. This, in turn, makes ETH less versatile, and less useful as a unit of account or medium of exchange. And second, ICOs that have raised ETH as their currency of choice have to sell it to fund operations.”

It also mentioned a lack of regulations and ETF rejections as other significant factors why investors kept dumping their crypto assets throughout the HY 2018.

Normalization of Crypto Market

With most of the speculators now gone, the crypto participants have become more aware of its functioning. New ICO projects, with no solid proof-of-concept, are dying due to investors’ knowledge of potential scams. Regulators are showing more interests in developing a cryptocurrency law in the wake of growing blockchain investments.

Tan mentioned David Swensen, a prominent investment manager, for being the latest to understand the less risky status of cryptocurrency markets. Swensen, aka Yale’s Warren Buffet, recently invested in two funds dedicated to cryptocurrencies.

“The crypto winter generally makes it safer for super-long-term oriented Yale-model institutions to enter at a price that isn’t dangerous,” said Tan. “You know what is scary? Investing and then immediately seeing an 80% drop. That is hard to recover from.”

Tweet123Share196ShareSend
Davit Babayan
Davit Babayan

Davit Babayan

Davit Babayan is an Armenia-based expat balancing the academic life of a software design engineer with the experiences of a financial technology journalist. He aspires to be a full-time columnist and wants to write a book that would be called, "A Homeless Who Found Bitcoin."

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Ethereum Price Rallies Above $3,000

Ethereum Price Fails to Hold Momentum Above $3K — Correction Ahead?

Ethereum price started a fresh increase above the $3,000 zone. ETH is now consolidating gains and might correct lower toward...

Aayush Jindal 1 hour ago

Bitcoin Exchange Inflows Spike After $123,000 Peak – Signs Of Short-Term Cooling?

Bitcoin (BTC) surged to a new all-time high (ATH) of $123,218 earlier today, pushing its market cap beyond $2.4 trillion....

Ash Tiwari 2 hours ago
Bitcoin Price Breaks $100K

Bitcoin Price Retreats After Hitting ATH — Bulls Pause for Breath

Bitcoin price started a fresh increase above the $118,500 zone. BTC traded to a new high above $120,000 and recently...

Aayush Jindal 2 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Solana

Solana (SOL) Pulls Back — Can Buyers Defend The $155 Line?

Aayush Jindal 15 minutes ago
Spot Volume Drop on Binance Preceded Bitcoin’s Price Surge, Data Shows

Spot Volume Drop on Binance Preceded Bitcoin’s Price Surge, Data Shows

Samuel Edyme 43 minutes ago
XRP Price Corrects After Strong Rally

XRP Price Corrects After Strong Rally — Support Levels in Focus

Aayush Jindal 54 minutes ago

Premium Sponsors

Press Releases

  • How XRP Users Can Make $1 Million from $100 in No Time at...

    4 hours ago
  • Aceste 3 monede sub 5 lei ar putea transforma o investiție de 1.000 RON în 10 milioane RON până în 2027

    2 достъпни криптовалути с...

    8 hours ago
  • Aceste 3 monede sub 5 lei ar putea transforma o investiție de 1.000 RON în 10 milioane RON până în 2027

    2 megfizethető kriptó 9000%-os potenciállal, olyan...

    9 hours ago
  • 2 cenovo dostupné kryptomeny s potenciálom 9 000 %, podobne ako kúpa Etherea za 8 dolárov začiatkom roku 2017

    2 cenovo dostupné kryptomeny s potenciálom 9 000 %...

    10 hours ago
  • Bitcoin Hyper

    ...

    14 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.