Bitcoin has historically corrected 85% from its highs, and right now, the coin is still in a bear market, said Richard Heart, founder of Hex.
â€œI think Bitcoin will tap $10,000 from its high of $65,000 because thatâ€™s what it normally does, it drops 85%. Ethereum usually drops 95% because it has lower liquidity so it acts like a leverage position on Bitcoin, to some degree,â€ Heart told David Lin, anchor for Kitco News.
Heart doesnâ€™t agree with the notion that more institutional adoption of Bitcoin will likely make the market less volatile.
â€œIn a reflective system, you have a parabolic rise up,â€ he said. â€œWhen you finally fall out of the parabola, the rule of thumb is that you drop 85% of the move. But in Bitcoin, you donâ€™t just drop 85% of the move normally, you drop 85% of the total. So we have seen hockey stick run-up, fall out and drop 85%, over and over again.â€
For more information on Hex and Heartâ€™s views on the broader crypto market, watch the video above. Follow David Lin on Twitter: @davidlin_TV (https://twitter.com/davidlin_TV).