Without a doubt, Bitcoin is now gaining mainstream adoption, although volatility has always rocked the market. Investors and traders are still hoping into the network, owing to several on-chain analysis. In a recent update, a survey carried out has shown that almost 85% of the current Bitcoin holders are planning to increase their holding in the next few years.
This is coming after a series of volatile movements that saw the asset make a surge to touch close to $60,000 before hitting a low figure of around $48,000. The survey carried out saw the firm Nickel Digital Asset Management saw 100 respondents span across the wealth management and institutional investors population.
A big percentage predicts bull run in the coming years
In their statement, the firm pointed out that the respondents were located across the United States, Germany, the United Kingdom, and Switzerland. Nickel Digital also mentioned that all the respondents had total assets under management of more than $110 billion. Looking at the responses, all of the respondents projected that they were expecting digital assets to grow in double folds over the next two years. While 56% pointed that Bitcoin would see a slight decline in the coming years, 22% were optimistic that the digital asset would be on course for a massive bullish run.
According to most of the investors, the reason why they dabbled into Bitcoin in the first was to increase their profits, with only 40% of the respondents noting that they used the asset as a shield against inflation. This view has been seen as the growing reason why most entities are entering the space as most countries’ currencies have seen a rapid decline in their currency due to the coronavirus pandemic that started early last year.
Nickel Digital CEO faults volatility and risky nature of Bitcoin
According to the CEO of Nickel Digital, Anatoly Crachilov, with investors growing confident of the infrastructure of the sector, digital assets are primed to fare well. He said this growing confidence would also see the influx of major investors across the financial space into the crypto sector. However, Crachilov mentioned that even though Bitcoin is a lucrative investment, traders and investors should be wary about volatility in the market.
He pointed out that he is one of the most people who hate volatility, but it is one of the characteristics of a new technology that has started gaining adoption. He said that such new assets would not trade in a straight line as they are sometimes that they would make a sharp move upward and make the same move downward.
Crachilov also pointed out that only investors who have studied the market should be allowed to enter it while stressing that the investors would also need to take high risks. This comment is not surprising, because Bitcoin which was trading around $4,000 as of May 2020, has seen a massive surge to trade at $55,000 to join the league of the most volatile assets across the financial market.
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