Bitcoin has historically corrected 85% of its highs, and at the moment the coin is still in a bear market, said Richard Heart, founder of Hex.
“I think Bitcoin will pull $ 10,000 from its high of $ 65,000 because that’s what it normally does, it drops 85%. Ethereum typically drops 95% because it has lower liquidity and therefore acts as a leverage position on Bitcoin to some extent, ”Heart told Kitco News presenter David Lin.
Heart disagrees with the idea that a more institutional adoption of Bitcoin will likely make the market less volatile.
“In a reflective system, you have a parabolic climb,” he said. “When you finally fall out of the dish, the rule of thumb is that you give up 85% of the move. But in Bitcoin, you don’t just lose 85% of the move normally, you lose 85% of the total. So we have seen hockey sticks rise, fall and fall 85% over and over again. ”
For more information on Hex and Heart’s views on the broader crypto market, watch the video above. Follow David Lin on Twitter: @davidlin_TV (https://twitter.com/davidlin_TV).
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