If there’s anything that we know by now when it comes to cryptocurrencies, it’s the fact that it’s a highly volatile asset. It only means that it could go up by $1,000 in just a few days, or it can go the opposite direction as well.
July was a good month for Bitcoin. Primarily, the spike in its price was primarily because of the possible Bitcoin ETF. On July 24th, Bitcoin was able to hit $8,486. However, Bitcoin fell to just under $7,000 on Saturday. What could be the reasons for this?
So why did Bitcoin fell below $7,000 momentarily? One, you have the fact that despite people’s excitement over a Bitcoin ETF, Cameron and Tyler Winklevoss’ Bitcoin application was denied once again by the US Securities and Exchange Commission. This was the second attempt of the Winklevoss on a Bitcoin ETF. This time around, the agency’s reason is its fear of price manipulation.
In addition to this, the dip happened right after Goldman Sachs published its mid-year economic outlook report. The report stated that Bitcoin is expected to lose more of its value over the year. And just when we all thought that we’ve seen the worse, new lows are yet to come for this year according to Goldman Sachs.
The report mentioned that: “Our view that cryptocurrencies would not retain value in their current incarnation remains intact and, in fact, has been borne out much sooner than we expected. We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value”.
Alan Valdes who is a Partner at Wall Street Capital Partners mentioned that “How do you protect your Bitcoin? These wallets seems very iffy at best. If someone hacks into them, it’s like losing cash, you are out. So, I think Bitcoin [has] a long way to go for the average person to get involved. Maybe in some emerging markets you’ll see it take hold with that currency could be a little stronger, it might work. But I think here for trade, I mean, we had at $20,000. Will it get there again? Anything is possible. But I’m not so sure”.
A Bullish Future on the Horizon?
But of course, there will be those who remain optimistic regarding the cryptocurrency. For one, Microsoft, Starbucks, and Intercontinental Exchange have teamed up in bringing a new company that could allow the use of cryptocurrencies to buy coffee. Could this move by Starbucks make Bitcoin a popular cryptocurrency that can be used even for small purchases? And could this actually lead to the mainstream popularity of the cryptocurrencies?
If you will ask Brian Kelly, who sit eh founder and CEO of BKCM, this could lead even to the approval of Bitcoin ETF.
Could adoption be the one that reason why there could be another bull-run? Now that regulations are improving, with SEC considering Bitcoin and Ethereum, not as securities, could mass adoption really be happening to get the price up?