In 2017, we’ve seen how Bitcoin’s price skyrocketed thanks to hype and speculation. It was able to reach near $20K but 2018 was a different story. Bitcoin even dropped as low as around $5,700 level. One of the things that may have contributed to the bearish market is regulatory changes within the niche. Countries started to tighten up regulatory measures hoping to end the Wild West nature of cryptocurrencies.
In China, for instance, cryptocurrencies were banned completely. Exchanges and ICOs were banned. In addition to this, Chinese regulators even tightened up their actions against crypto related activities recently as they banned hotels and malls form hosting meetings and gatherings that are crypto-related.
Mike Novogratz Still Bullish on BTC
Mike Novogratz who is the founder and the CEO of Galaxy Digital claims that Bitcoin is set to go bullish now that there is the participation of big companies that are starting to adopt and accept cryptocurrencies. Novogratz mentioned that the entry of Microsoft and Starbucks is a sign that more institutions are expected to come due to fear of missing out (FOMO).
Novogratz also mentioned that Bitcoin has bottomed already. He also predicted that by the end of the year, Bitcoin is set to increase by 30% once the major resistance levels at $6,800, $8,800, and $10,000. He believes that at this point, institutional investors will enter the market via trusted custodian solutions.
Institutions More Willing to Participate?
Custodian solutions are something that intuitional investors are looking for. Last month, both Citigroup and Morgan Stanley have announced their plans to offer such for these clients. You also have Coinbase and Bitgo to have regulated custodian solutions. Novogratz believes that Bitcoin will one day become part of an investor’s portfolio. He added that people will one day consider Bitcoin as gold which is a means as a store of value.
Momentum in 2019?
Novogratz believes that the momentum will start to pick up by 2019. It is also worth mentioning that there is movement seen in altcoins that could mark a bullish market. In addition to this, there’s the anticipation regarding the possible Bitcoin ETF. However, in reality, a Bitcoin ETF is not going to be approved until 2019. You now have a pro-crypto US SEC Commissioner in Hester Peirce who happens to have even made a letter of dissent regarding the rejection of Bitcoin ETFs.
Many believe that a Bitcoin ETF can invite institutional investors to invest in cryptos. In fact, despite the latest delay, Solid X and VanEck officials aren’t exactly alarmed.
In addition to this, by October, we will be able to see the opening of BAKKT which is a crypto exchange that has been founded by the New York State Exchange. This is a platform that has followed SEC regulations. And with NYSE’s clout in the world of finance, it seems that it is going to drive professional traders to dive into the crypto space.
Are we going to see Bitcoin price go up in the next months? Is Novogratz correct in his assessment that Bitcoin has already bottomed already?