Is Bitcoin’s stability a sign of its maturity? Blockchain.com co-founder agrees
- Bitcoin has passed through turbulent times over the past few weeks, but the token is now rebounding.
- Blockchain.com Co-founder stated that the recent stability of the token shows increased maturity in market.
- He also stated that Institutional traders have played an important role to stabilize Bitcoin’s price.
The cryptocurrency market has witnessed a fair share of volatility within the past several weeks, with some crypto-asset shedding as much as 40% with a space of two months. Bitcoin (BTC/USD), in particular, fell to around $30,000 from its all-time high of $63,000 barely two months ago. However, it seems the market is gradually correcting, with the top crypto asset now heading towards the $40,000 resistance level. The rebound of Bitcoin and other crypto-assets has been seen as something positive by several analysts.
Co-founder of Blockchain.com Peter Smith was discussing Bitcoin on CNBC. He explained how he views the crypto asset, its price volatility, and the recent stability that comes afterwards.
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According to Smith, the slight stability of the crypto market in the past few days shows that the market is gradually maturing.
He also noted that retail traders and institutional investors have played a massive role in ensuring that Bitcoin remains stable.
Bitcoin’s reactions to indices
Bitcoin has been reacting to different market indices lately. When Elon Musk announced the suspension of Bitcoin payment by Tesla, the cryptocurrency fell off. It also dug deeper after China’s ban on Bitcoin mining.
However, it started picking up again when the crypto enthusiasts and stakeholders came together to form an association to provide a more renewable form of mining Bitcoin.
Also, the price rose again after El Salvador announced its plans to make the crypto asset a legal tender.
Strong institutional players keeping Bitcoin afloat
Smith has stated that many people thought that Bitcoin would retrace its steps further below when it hit the $30,000 resistance level. However, that didn’t happen, and Smith says institutional investors had major roles to play there.
He also noted that the market is showing a strong resolve to fight off several challenges Bitcoin has faced in recent times. According to Smith, that is a sign that the Bitcoin market and the crypto market, in general, have matured to a certain extent.