Jiang Zhuoer, head of the BTC.Top mining pool, warns a bear season may be beginning for the leading cryptocurrency
Bitcoin could be entering a significant bearish cycle, according to Jiang Zhuoer, one of China’s largest miners. Zhuoer shared his perspective in an interview with crypto-journalist Wu Blockchain, citing several model-based studies to support his view on the market’s recent weakening.
Wu Blockchain posted on Twitter: “Jiang Zhuoer, one of the major Chinese miners, told WuBlockchain that according to the latest multi-model studies, the fastest timing would be September 2021 and the slowest June 2022, for a shift from a bull market to a bear market.”
The miner argues that weak institutional interest is a key factor behind the potential downturn. Since Tesla’s $1.5 billion purchase of Bitcoin, no other major institution has announced a comparably large acquisition. Zhuoer also suggested that as the broader economy recovers, many companies will prioritize returning resources to traditional, post-COVID economic activity rather than crypto investments.
He said Bitcoin is likely to move into a bearish phase as attention shifts away from cryptocurrencies. The largest cryptocurrency by market capitalization had given back much of the prior weekend’s gains and was trading at $57,507.37, down 0.76% in the last 24 hours at the time of the report.
BTC.Top is among the largest mining pools and, according to Statista, accounted for 0.75% of Bitcoin’s total hash rate in February.
Zhuoer’s forecast aligns with historical market cycles that often see bullish runs taper off after roughly two years. He emphasized, however, that the outlook could change if more institutional investors entered the crypto space. Institutional participation would be crucial to stabilizing Bitcoin, as it would attract additional buyers and capital to the asset.
Several institutions, including banks such as Morgan Stanley and Goldman Sachs, have begun to adopt crypto-related services and products gradually. This trend could be encouraging, indicating that institutional demand has not entirely diminished. Zhuoer added that, unlike other short-lived bullish rallies, the current upward momentum could be sustained longer if institutional investors become more active in the market.