Galaxy Digital Mike Novogratz has recently stated that a decrease in the volatility of Bitcoin has resulted from a lack of institutional investment in the cryptocurrency market.
According to Novogratz, this situation is being supported by retail traders who buy and stabilize drops.
James Butterfill, head of research at CoinShares also mentioned this in May, saying that declining interest from institutional investors and hedge funds has caused a decrease in market activity.
Meanwhile, Novogratz believes that Bitcoin will be thrust back into turbulence when the Asian traders come back into the market.
He has mentioned two factors that are causing the rise of Bitcoin. Firstly, the Chinese messenger WeChat began discussing the BTC rate again, which may popularize virtual currencies due to its 1 billion user base.
Secondly, the licensing of crypto exchanges by Hong Kong to service retail investors has provided an attractive long-term investment.
As a result, the factors stemming from China may positively affect Bitcoin in the long term.
