At this point, it is understood that the crypto market is anybody’s ball game. It is important to note that there are many cryptocurrencies. But today, Bitcoin remains the undisputed top digital currency regardless of what ratings say from Weiss to China, Bitcoin remains the cryptocurrency with the largest market capitalization and is a household name.
Though Ripple CEO Brad Garlinghhouse believes that the Bitcoin’s popularity is going to diminish in time even comparing Bitcoin to Napster, no one exactly knows if this prediction is ever going to come true.
No Long-Term Rally
But just how bad does it actually look? There are cryptocurrency experts such as Tom Lee who is very optimistic about the future of Bitcoin even predicting that it is going to surpass its all-time high this year. However, as Bitcoin remain around $7,300 to $7,500 range, it seems that the forecast is quite bad for Bitcoin if you will rely on technical analysis.
According to experts, BTC needs to surpass $8,500 in the next few days in order to bounce back successfully in the $10,000 region. However, without this recovery, it is quite unlikely that Bitcoin is going to have a short-term bull run.
Ari Paul who is the co-founder of the digital asset investment firm BlockTower mentioned that “I’ve had chats with some very savvy fund managers in the last few days, all of whom said, ‘I don’t see when the new money comes from any time soon’”. Could this be a sign of things to come for Bitcoin?
He also mentioned that institutional investors’ capital started going to cryptocurrencies around mid-2017. However, it is slower than expected. And in fact, no one knows for sure when the next wave of large investment is going to happen on the part of the institutional investors.
Many are speculating that institutional investors are actually waiting for certain regulatory changes before they even enter the cryptocurrency market for good. In fact, regulators are now looking closer at scams and potential price manipulation.
China Engaging on Bitcoin Again?
China’s president, Xi Jin Ping commented recently calling blockchain calling it as “breakthrough”. He said that “A new generation of technology represented by artificial intelligence, quantum information, mobile communications, internet of things and blockchain is accelerating breakthrough applications”.
He also added that he will be opening national laboratories in order to develop and research things about blockchain and how it can be used by China. Many are wondering if China is now warming up towards Bitcoin yet again?
If China is ready to pursue Bitcoin, then perhaps, it is a good idea to follow the advice of Dan Morehead, who is the CEO of Pantera. He suggests that you should buy cryptocurrencies now while it is still on a low.
In reality, no one could tell what the future is for Bitcoin. It could be true that the moment there’s regulatory clarity that more institutional investors are going to participate. On the other hand, it could also be true that Bitcoin isn’t going to have any bullish trend anytime soon. Would you trust the technical analysis or go with what crypto experts think?