Bitcoin keeps on dropping in the first two weeks of 2019. This time around, it has dropped once again below $3,600. Just last week, Bitcoin had its intra-week high at $4,109 on January 8. Many were predicting that it was because of the nearing decision of the US Securities and Exchange Commission along with the launch of Bakkt.
However, things aren’t looking good for Bitcoin. Are we even nearing the bottom? For Anthony Pompliano, who is the founder of Morgan Creek Digital Asset, he mentioned that Bitcoin is about to reach its bottom. For “Pomp”, it is likely that Bitcoin is going to test $3,150 and possibly go lower.
Other altcoins also experienced losses as Ethereum lost around 6% in the last 24 percent while Tron experienced the most significant loss by over 9% while Bitcoin SV is down nearly 8%.
Bottom But No Bull
Will there be another bull run in case Bitcoin reaches the bottom? For Pompliano, it is unlikely that there will be another bull run this year. He believes that this year, Bitcoin is going to range between $2,500 to $4,500 for the majority of the year.
He is not alone in his prediction. Fred Wilson who is a pro-crypto venture capitalist and the co-founder of Union Square mentioned that he is expecting some “bullish runs” and instances of “selling pressure” that can drive the price of crypto down as well.
Is Adoption Coming?
Adoption is something that didn’t happen last year. Despite the regulatory changes in the market, it still didn’t convince institutional investors to fully commit. However, it seems that slowly, adoption is happening. For Pompliano, he said that “adoption has continued to increase even amid the bear market”.
He explained that the hashrate went up by 4 times at 2018 during its peak while the transactions kept on increasing monthly from March until today. He is a believer that the Lightning Network will help increase adoption of Bitcoin. He also thinks that it is one of the biggest stories of the year.
A Bitcoin ETF Soon?
Many are optimistic that once a Bitcoin ETF becomes a reality, there will be widespread adoption since institutional investors are going to have an easier time to participate in the market. There was news that Japan’s FSA is interested in having a Bitcoin ETF.
However, according to the spokesperson from the Financial Services Agency (FSA), Japan isn’t considering the approval of a Bitcoin ETF. The representative mentioned that “There is no such fact that we are considering approving ETFs which track crypto-assets at present. We are not currently considering approving them”.
The chances of getting VanEck’s Bitcoin ETF application is quite slim. SEC Chairman Jay Clayton mentioned that the lack of surveillance tools is the main concern of the agency. This makes the market vulnerable to price manipulation. Months ago, the agency rejected a number of Bitcoin ETF applications because of the possibility of price manipulation.
Is Bitcoin about to approach the bottom and will it finally recover in the coming months this year? If Pompliano’s prediction is correct, investors will have to wait before Bitcoin tops its 2017 performance.