A year ago today, Bitcoin almost hit $20K. And after a year, Bitcoin has dropped around 85% of its value. Bitcoin is currently floating around $3,400. Though 2017 was a great year for the crypto market, 2018 was the complete opposite. Regulatory changes scared a lot of investors who weren’t actually there for the technology that Bitcoin and blockchain provide. But instead, it has scared investors who aren’t afraid to HODL. These are the same crypto investors who were in it just for a quick profit.
So far, it seems that Bitcoin is still struggling to find its bottom. The good news today is that Bitcoin and the crypto market soared as we marked the anniversary when Bitcoin reached the historic all-time high. Bitcoin jumped by 6% along with the other top altcoins.
For Stephen Innes who is the head of Asia Pacific trading at Oanda, he said that “Looking at the hand that is dealt, we should expect crypto markets to trade lower until ultimately investors can justify and determine valuations”. He also added that “But even from a cross-asset play with global markets veering south the fact investors can’t pin an intrinsic value on BTC, in my view makes it even less appealing”.
Will Regulatory Clarity Bring Fresh Capital?
One of the things crypto observers are waiting is for the regulators to already set the tone in the market. Many are still waiting when institutional investors are going to participate in the crypto market. The US Securities and Exchange Agency has been looking closely at ICOs lately targeting celebrities that promoted the token as well as the company behind the ICO. Floyd Mayweather and DJ Khaled were among the celebrities who paid the fine to the agency.
As for the highly anticipated Bitcoin ETF, SEC chairman Jay Clayton mentioned that the agency is only going to approve a Bitcoin ETF only if the market is going to make the necessary changes. One of the primary concerns of the SEC is the possibility of price manipulation. Unlike regulated exchanges, crypto exchanges don’t have the necessary surveillance tools that can help them detect the possibility of price manipulation.
What Is Next For Bitcoin?
What’s next for Bitcoin? For Stephan Pair who is the chief executive of BitPay, he mentioned that “I used to say 10 years” when asked about the time when we will see Bitcoin being adopted. He added that “Now, I think it’s more like three to five years until you can go into a restaurant, retail establishment. and everybody’s going to expect that the store will be able to accept a blockchain payment”. Of course, one problem with cryptos is that cryptocurrencies are highly volatile. However, there was a time a few months ago when Bitcoin was stable at around $6,200 to $6,500. It was even less volatile than tech stocks.
But of course, there are those that are also still optimistic regarding the future of Bitcoin. Just like Tom Lee of Fundstrat, he believes that the real value of Bitcoin is far greater than the current price. Looking back after Bitcoin was able to reach its all-time high, did you regret buying Bitcoin?