Many are holding on to their cryptocurrencies, especially their Bitcoin for one particular reason—the next bull run. In fact, there are different predictions where bitcoin is going to be in the coming months or where it is going to be before the year ends.
If you are going to look at how Bitcoin’s price skyrocketed last year, it went from around $1,000 to near $20K by mid-December. Now, by 2018, things weren’t looking good as regulatory changes shaped the industry.
Now, a lot of crypto investors are hopeful that regulatory clarity could bring in institutional investors that can change the entire ball game. There are also those who are hopeful that there will soon be a Bitcoin ETF. But is this really the case at this point?
The US Securities and Exchange Commission denied a number of Bitcoin ETF applications. The reason for the rejection of Bitcoin ETF applications including that of Cameron and Tyler Winklevoss is price manipulation.
10x Bull Run?
Pantera Capital Founder and CEO Dan Morehead mentioned that “If you look at the next bull run, I think the crypto space overall could hit 10x from here”. And according to his forecast, the market cap for the entire crypto market will reach $2 trillion.
However, if you are thinking that Bitcoin ETF is soon to become a reality, Morehead thinks that “an ETF is years away”. He explained his statement that “very few people know that the last asset class that was certified for an ETF was copper. It took three years, even though copper has been around for 8,000 years”. For him, he believes that “an ETF is not news”. He also thinks that it is naïve to rely on a Bitcoin ETF approval for the future of cryptocurrencies.
Even experts think that a Bitcoin ETF could easily bring institutional investors at play. And this means serious amount of money flowing into the market. He said that “The SEC doesn’t want widows and orphans buying Bitcoin ETFs. They don’t even know if Bitcoin is officially a security”.
Too Early for Bitcoin ETF?
Is it really too early for a Bitcoin ETF at this point? Morehead believes that this is the case. He also thinks that profit savvy investors “overreacted”. He believes that the real noteworthy news is “the Fidelity and the Bakkt thing”.
Fidelity has decided to make another new company with a focus on institutional investors that wanted to dabble on cryptos while Bakkt is expected to launch this November. He said that “When you look back at this five years from now, I think those are going to be events that spurred an enormous amount of capital into the industry”.
Morehead isn’t exactly alone in his prediction when the next bull run is going to be. If you are going to ask former Goldman Sachs partner Mike Novogratz, he believes that serious capital coming from institutional flows will happen sometime in Q1 and Q2 of next year.
The next bull run is still a guess from the experts. In fact, we don’t actually know if there will be another bull run. 2018 is definitely a rough year for cryptocurrencies. Is 2019 a different story for the industry?