Cryptocurrency markets are experiencing a paradigm shift, driven by the increasing involvement of institutional investors. During a recent discussion, Roundtable anchor Rob Nelson, Jon Najarian from Market Rebellion, and Alex Mascioli of Parlay Labs and founder of Trade The Chain, delved into how these changes are shaping the future of crypto assets like bitcoin and ethereum.

Nelson kicked off the conversation by highlighting the growing maturity of the crypto market. He emphasized the stabilizing effect of institutional investments, predicting that their involvement would limit drastic downturns. "There's a certain amount of maturity that's happening in the space," Nelson said, noting that institutional players are buying more and will eventually sell to retail investors, leading to increased demand and stability.

Market Rebellion's Najarian agreed, stating that the influx of institutional cash is changing the market. He pointed out that the ease of entry into crypto, especially through spot bitcoin exchange-traded funds (ETFs), is attracting investors who were previously hesitant. "Do I expect bitcoin to break below $50,000? No, not really. I would be pretty comfortable with a $45,000 downside, not target, but firm support level," Najarian explained. He attributed this confidence to the broader public participation enabled by ETFs, which make digital assets more accessible.

The discussion then shifted to the peculiar behavior of crypto investors, especially the so-called "hodlers" who hold onto their assets through market fluctuations. Nelson suggested that as more retail investors enter the market, there might be a more natural process of buying and selling, similar to other markets.

Parlay Labs' Mascioli chimed in with a cautionary note, drawing parallels to his experience with Blackberry's stock. He emphasized the unpredictable nature of markets, underscoring that even robust companies can experience unexpected downturns.

Najarian mentioned a significant withdrawal of ethereum from the Coinbase platform. He clarified that this was a withdrawal, not a sale, and speculated that the holder might be positioning for future gains. "Sometimes when you see things like that, it's because people are looking ahead to maybe some price gains and they want to be ready for it," Najarian explained.