Are the Crypto Whales Preparing for The Next Bitcoin Bull Run?
Bitcoin and the cryptocurrency market have been enduring a 13-month long bear market following the initial bull run of 2017. However, this hasn’t stopped the bitcoin enthusiasts and general supporters from gearing up in bullish preparation for the next one. Bitcoin has shed over 80% of its price since it hit its ATH in December 2017.
A Bullish Sentiment
Bitcoin (BTC) has been trading between $3,500 and $4,000 so far this year. Now, many cryptocurrency investors such as Digital Currency Group and Grayscale Investments Chief Executive Barry Silbert and Mike Novogratz, founder of Galaxy Digital Holdings are predicting a bull run that could be closer than you think.
In an interview with CNBC, Barry Silbert said:
As far as I’m concerned, bitcoin has won the race to be digital gold, I’m as bullish as I’ve ever been. I’m convinced that whatever money is in gold is not going to stay in gold. That gets handed down to millennials—I’m highly confident a lot of that will go into bitcoin.
In the meantime, the long-time bitcoin bull Mike Novogratz predicts institutional money to start flowing into the cryptocurrency economy within the next year or 2. This is the catalyst he expects will cause the price to rally.
In an interview with the Bloomberg newswire service, Novogratz said; “a small number of institutional assets is a lot of money.”, predicting the price of Bitcoin (BTC) to rise to $8,000 within 12 months.
This bear market the cryptocurrency market is enduring is known as the ‘crypto winter‘ due to its harsh effects on the industry. During this period, over $400 billion shed from the market cap of the worlds cryptocurrencies due to investors getting cold feet. It’s likely that most of them were worrying about institutional investment and mainstream adoption failing to come to fruition.
Cryptocurrency Fundamentals On The Rise
These bullish predictions started coming up after the news that Bitcoin and the blockchain asset management firm Morgan Creek Digital; recently got the first ever crypto asset investment from a U.S. pension fund.
In the rest of the crypto space, cryptocurrency fundamentals are rising. Bitcoin transaction fees are hitting new lows even as bitcoin transactions reached a one year peak last month.
In addition to this, Jack Dorsey, CEO of Twitter also says that his highly popular ‘Cash App’ will soon be implementing support for the Lightning Network. Small payments of bitcoin can be sent over the Lightning Network in order to be sent much faster and with little to no fees.
Thus, with new innovations coming to life day by day, many crypto investors and traders alike are looking towards new developments. Some of these include the highly anticipated Bakkt bitcoin trading platform; and a U.S bitcoin ETF as they could give Bitcoin (BTC) a boost in price.
— CoinDesk (@coindesk) February 11, 2019
Be that as it may, many of these expectations have been somewhat watered down; following the US Securities and Exchange Commission frets over the potential price manipulation of Bitcoin (BTC) and other cryptocurrencies.
Bakkt has a bitcoin platform coming soon, currently in the development process with help from the New York Stock Exchange owner Intercontinental Exchange. They also have partnerships with coffee shop giant Starbucks, as well as Microsoft. This year, we see many plans to offer bitcoin futures trading from the first quarter of this year. This should open bitcoin and the wider cryptocurrency market up to the wider retail market.
In addition to this, Chinese Billionaire Zhao Dong (one of the biggest OTC traders of bitcoin in the world) stated; “Now is the time to stock up on Bitcoin. All you need is patience.”
It seems as though the aftermath of the ‘crypto winter of 2018’ has only caused increased bullish sentiment and morale amongst the crypto space. While it’s true the price of cryptocurrency isn’t what it once was. The technology and developments behind it have been growing at ridiculous rates. If things continue to move in this direction; maybe the predictions of another bull run coming soon could become a reality.
Have you invested in Bitcoin or cryptocurrency? If not, why? Let us know your thoughts in the comments below!