Even though Bitcoin is still on a gain spree, in the long run, the digital asset is presently bleeding, losing a remarkable number of profits that it has accrued for days. While much has been said of the volatility in the crypto market, all hands have been pointed to institutional investors who are presently cashing in on their profits in the Bitcoin market.
According to a director at Forbes, the rate at which interests are on the rise has also added to the weight that has pushed the digital asset in the bearish direction. Bitcoin has been able to sustain what would be regarded as a long-term profit following the digital asset’s sporadic rise, which started around October last year.
Bitcoin still seeing a gain of 80% in its YTD
Despite this recent loss, the digital asset has accumulated a total profit of 80%, judging by its year-to-date data. However, the digital asset is in deep bearish waters after touching close to the $50,000 and seeing a loss totaled over $10,000. In his words, the director mentioned that Bitcoin is presently passing through exhaustion as the digital asset is still weak from the previous surge that it underwent.
He said he is also of the view that the institutional investors that entered the market when the market was booming are now taking their profits, leading to the decline that we have been seeing. Despite all that, the director said that the most damaging entity to the price of the digital asset is the massive rise in the rate of inflation.
He pointed out that investors tend to go over to assets that promise fixed income due to their increased interest rate. He said that even though most people have pointed to Bitcoin as an asset that promises investors haven, times like these are not so comforting for the investors.
Ethereum severely outperforming Bitcoin
The director mentioned that even though he figures that Bitcoin might go bearish in the coming days, he still believes that the asset would hit high figures in the long term. While Bitcoin has been the star of the crypto story, Ethereum has leaped to push the digital asset down in its year-to-date gains. With Bitcoin boasting of gains around 80%, Ethereum has seen a massive gain of about 110%.
According to the director, he feels that the digital asset’s success has been thanks to the institutional presence and the network’s usage suspected to the DeFi sector. In recent news, institutional investors are not adding the only Bitcoin to their holdings as they are also looking to Ethereum to bring in profits.
The Ethereum blockchain has welcomed two spectacular sectors of the economy, the NFT and the DeFi sector. With both remarkably well in the past few months, Ethereum has seen a massive rise thanks to the sectors. With the network’s usage growing as the day progresses, investors are also adding their pressure by buying up the digital asset.