Negative publicity and wild volatility have haunted Bitcoin in 2018. Many investors have since turned away from the leading cryptocurrency, as the price dropped from $20,000 to the low $6,000s. There is no denying that Bitcoin has recently seen some dark days, but the crypto appears to have now bounced back from the worst. Right now, having broke through the $8,000 barrier, the tide finally seems to be turning, with Bitcoin back in the green and back on the rise.
ETFs Can Send Bitcoin to the Moon
So, what exactly has been the catalyst for Bitcoin’s return to form? The strong argument is that the boost is linked to the SEC’s consideration of the CBOE’s request to push through Bitcoin ETFs. The missing piece of the puzzle when it comes to taking Bitcoin to the next level has been institutional investment. ETFs will allow the institutional money to flow, potentially sending Bitcoin “to the moon” in the process. Up until recently, every Bitcoin ETF application had been flat-out rejected. The SEC has always cited concerns regarding investor protection and whether there was a capable infrastructure in place for EFTs to acquire a large-scale amount of BTC.
The CBOE has already broken new ground, as it secured SEC approval for futures trading, even against the odds. This progression stands for a lot, as it has shown the SEC that the CBOE can match its guarantees. Alleviating the SEC’s concerns, the CBOE could likely be behind the first ETF approved to purchase BTC.
An ETF is important to Bitcoin’s future, because just 50% of the funds entering the crypto space in 2018 have been institutional. Analysts and forecasters agree that this figure needs to be much higher to improve Bitcoin’s prospects. Now that BTC has been widely snapped up at a discounted price during its slide, the ETF talk has become louder – with an ETF now seeming more realistic in 2018 or 2019 than ever before.
What do the Experts Have to Say?
Tom Lee is a personal favorite of BitStarz News, as his positive views on the Bitcoin market are usually rooted in reality. The Fundstrat Senior Partner believes that Bitcoin is on the comeback trail, especially with a potential ETF on the horizon. Lee sees Bitcoin reaching the $25,000 before the end of 2018, with the world’s leading cryptocurrency set for a jaw-dropping bull run. Will ETF approval be the trigger to this? It’s hard to argue against that being the case.
From a certified expert to a controversial speculator. It’s easy to ignore John McAfee because of his wild predictions, but he has had some success in the past. He predicted that Bitcoin would smash through the $5,000 during summer 2017 and he wasn’t wrong. McAfee has gone big with his latest prediction, as he believes that Bitcoin will hit the $500,000 mark in 2020. It’s a huge – borderline ridiculous – prediction, but who knows, if ETFs catch fire amongst investors it could be the rocket fuel that Bitcoin needs.
At BitStarz News, we do our best to remain impartial – even if we are pro-Bitcoin. Amongst all the positivity surrounding Bitcoin right now, there are a few names that seem to be taking a more negative stance. One of those names is former International Monetary Fund (IMF) chief Kenneth Rogoff. Slamming Bitcoin, he feels that its value will eventually falling to as low as $100. Considering that the IMF is intrinsically linked to the global centralized banking system, Bitcoin was never likely to get a gleaming review, but this forecast does feel particularly harsh.
Heading in the Right Direction
Bitcoin has been on the receiving end of a bad beating in the markets, but its recovery is now well underway. The sheer potential of ETF is getting investors excited about Bitcoin all over again, as it’s proving to be a tremendous catalyst for the digital currency. There might have been a reason to doubt Bitcoin during its low moments, but the hard work of the dev teams and the pro-Bitcoin community is starting to pay off. With improving infrastructure, positive forecasts, potential institutional investment, and the likelihood of a Bitcoin ETF in the near future, Bitcoin is without a doubt back on track.