The Bitcoin (CRYPTO: BTC) price is trading right about where it was this time yesterday, at US$19,112 (AU$30,463).
The world's first and top-valued crypto remains down 60% in 2022, and down some 72% from the all-time highs BTC reached on 10 November last year.
With the Bitcoin price down so dramatically so quickly, it's little wonder that many retail investors have lost their appetite for the digital token and its fellow altcoins.
But, as Justin Arzadon, head of digital assets at Betashares, pointed out to Livewire, institutional investor interest remains relatively robust. And that could bode well for Bitcoin and the wider world of cryptos in the year ahead.
Why institutional investors could spur the Bitcoin price into a new bull run
Citing data from Cointree, Arzadon noted that retail investor sentiment in crypto assets, based largely on the Bitcoin price and "other large cryptocurrencies", is in the "extreme fear" part of Cointree's Fear and Greed Index.
But he said the smart money, or institutional funds, aren't nearly as timid.
"Looking at the price and action of Bitcoin and the rest of the crypto market over the last year, it looks like the institutional money is following Warren Buffett's advice, 'Be fearful when others are greedy, and greedy when others are fearful,'" he said.
Stressing there are no assurances in life, let alone when it comes to crypto investors hoping the Bitcoin price will soar to new heights, Arzadon added:
Some of the largest institutional managers in the world are getting involved in, or deeper into, the crypto economy. This makes me believe that they are not only going to be major beneficiaries of the next bull run, but they are also laying down the infrastructure that could help make it happen.
Institutional adoption has arrived
Global asset manager BlackRock is just one of the major firms to enter the crypto space in 2022.
Blackrock announced the launch of its Bitcoin private trust for its institutional clients in early August. That gives 'the smart money' direct exposure to the movements in the Bitcoin price.
According to Blackrock:
Despite the steep downturn in the digital asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities.
Bitcoin is the oldest, largest, and most liquid cryptoasset, and is currently the primary subject of interest from our clients.
So, when might investors expect the next bull run in the Bitcoin price?
"For the next bull run to occur, I have been adamant that three things are needed. Adoption from both institutional and retail segments, regulatory clarity, and real-world use cases," Arzadon said.
"The use-cases continue to develop, regulations are slowly being put into place and are expected to become clearer in 2023-24, but it is evident that institutional adoption has arrived," he added.
