Sun. Aug 7th, 2022

Ethereum Co-Founder Charles Hoskinson is not the least bit fazed by the crypto market downturn that has sent the bitcoin price spiraling 17% in a week to approximately $7,200. Despite the fact that the BTC price has been slicing through support levels like a hot knife through butter, Hoskinson, who left Ethereum to launch Cardano, sought to be the voice of reason to the crypto community. He blamed the weakening in the bitcoin price to a perfect storm of events comprised of FUD, “news trading and manipulation,” saying that once these forces subside, bitcoin will be left standing.

“We will see 10k BTC again and welcome 100k. Crypto is unstoppable. Crypto is the future,” said Hoskinson.

Source: Twitter

Indeed, FUD took the crypto market by storm when a report was published by The Block suggesting that cryptocurrency exchange Binance got caught in a crackdown of crypto companies in China. Binance CEO Changpeng Zhao has since dispelled those rumors, saying that he intends on suing The Block for spreading damaging lies:

“But instead of apologizing to the community, they insist there was nothing wrong with using a fake title like a “police raid” that hurts users.”

BNB, the native cryptocurrency of Binance exchange, is currently trading at $15.92, down from $20.26 just a few short days ago.

Meanwhile, investors in Cardano, which was created by Hoskinson and which is tied to IOHK, have similarly had to take it on the chin lately. Similar to bitcoin, Cardano, the No. 12 cryptocurrency based on market cap, has shaved 17% off its value in the past week, as many altcoins continue to take their cues from their larger peer, BTC. Bitcoin’s dominance is currently hovering at 66%.

Institutional Investors

If the bitcoin price is to attain Hoskinson’s bullish forecast of $10,000 and eventually $100,000, institutional investors will likely have something to do with it. Cryptocurrency exchange Binance published a report over the weekend that provides a glimpse into the trading habits of big investors. The exchange canvassed more than six-dozen investors across “firms, funds, and institutions” with crypto allocations of between $100,000 and greater than $25 million.

Chief among the findings is that big investors prefer to keep their funds on exchanges instead of self-custodying their assets. According to the report:

“Exchanges remain as the most popular choice for cryptoasset storage amongst our institutional and VIP clients at 92.1%. When moving to self-storage, cold wallets are the second most favored choice, given their improved safety and control. Third-party custody services were the least popular option at 2.6%.”

Source: Binance

More than half of those polled, or 54%, maintain crypto portfolios comprised of between one and 10 coins regardless of their preferred trading strategies.

Bitcoin Price Perspective

Meanwhile, Hoskinson joins a chorus of bullish traders who maintain they are able to see the forest from the trees in the crypto market. Twitter account PlanB, who boasts more than 52,000 followers, observes that the recent volatility is just “normal bitcoin behavior,” pointing out that the leading cryptocurrency is “still up 2x YTD.”

Source: Twitter

Last month, the bitcoin price was buoyed by bullish statements on the blockchain from Chinese President Xi Jinping. Those gains have since been wiped out of the crypto market, and bitcoin is back to trading at pre-Xi comment levels.

Source: Bloomberg

Despite all of the noise, the technical signals are supporting Hoskinson’s bullish outlook, with the Relative Strength Index (RSI) currently pointing to oversold levels in the bitcoin price.