After another dazzling rally of digital assets, triggered largely by bitcoin, analysts started reassessing the crypto market and its future prospects. The value of bitcoin has hit several new highs in a short period of time. Notably, it continues its bull run.
Although a surge in the BTC value has significantly increased the capitalization of the entire virtual market, experts are not impressed by such growth. After having analyzed the current situation in the market, they came to the conclusion that at present, the crypto market is too small to be considered independent.
Larry Fink, the CEO of BlackRock, believes that the main problem of the crypto market is its small size. This is why the bitcoin price can be affected by the transactions of major market players. "(Bitcoin) is still untested. It has huge volatility moving in 5-6% increment with small dollar investments moving it. For anything like that to be truly successful, it’s going to have a broadening of the market…,” he pointed out.
Given the current transaction volume, even a small group of crypto-whales will be able to bring down or raise BTC quotes. In this case, other big market players will not make large investments. "The digital asset might see a bright future and even become a store of value, but it still has its time ahead to prove itself," Fink surmised.
