[Bitcoin Now] "Virtual Assets Are Different from the Past... Investor Sentiment May Recover Quickly"

NH Investment & Securities analyzed on November 7 that, unlike past black swan events, the recent slump in the virtual asset market has not damaged market trust, so investor sentiment could recover quickly.

Hong Sungwook, a researcher at NH Investment & Securities, explained this in a report titled "Comparing Past Bitcoin Declines," released on the same day.

Recently, the virtual asset market has continued its overall downward trend. In the case of Bitcoin, it even dropped below $100,000 at one point. He stated, "Since 2018, Bitcoin has experienced a decline of more than 20% on seven occasions," and added, "If we compare the high of $126,000 on October 6 and the low below $100,000 on November 4, this drop can be seen as a 21% decrease, but the situation is still better than in previous declines."

He further noted, "The trend of institutionalization is continuing, and Bitcoin has emerged as a leading asset in the de-dollarization theme, so it is unlikely to show the extreme volatility seen in the past."

He also predicted that the CLARITY Act in the United States would act as a positive factor for the virtual asset market. He said, "In the short term, the CLARITY Act could serve as a positive issue for Bitcoin and the market," and explained, "This bill, also known as a market structure bill, aims to establish a framework for the entire digital asset market."

He emphasized, "It could be passed as early as within this year or early next year, and similar effects could occur as seen when the GENIUS Act was passed, which brought significant attention to the digital asset market."