There is no denying that the last few months since December 2017 have been a bumpy ride for the King of Crypto: Bitcoin (BTC). Mid-December found BTC reaching for the sky at levels of $20,000. A little over six months later, on June 29th, the same BTC was valued at $5,800. This was a significant drop in value of 71%. Some have called it a massive correction, while others have speculated manipulation due to Bitcoin futures contracts.
But there are still many reasons for us to be bullish in this bear market -
Firstly, Coinbase has just introduced its new service by the name of Coinbase Custody. This new service is aimed towards institutional investors and high net individuals who want a secure place to store their digital assets. Coinbase will provide cold storage for such institutions and individuals at a fee that will cover additional benefits such as insurance. This means that the billions, if not trillions of dollars from Wallstreet, is headed towards the crypto markets and Coinbase providing a secure avenue for that.
The second reason is the regulations bitcoin is going through all over the world. The American SEC has already declared it is not a security. Therefore, this paves the way for institutional investors to buy it in the regular crypto markets. The country of Malta has also passed 3 bills to regulate crypto and their exchanges in the country. This is why Binance is planning on opening a crypto exchange there. Other countries that have shown an interest in regulation are Japan, Australia, South Korea, Philippines and Indonesia.
Finally, and this is the main reason, is the fact that the CBOE Global Markets, have filed for a new Bitcoin ETF license application with the SEC. Even though the SEC has declared that they will not be regulating BTC directly, ETFs are marketable securities that track an index, commodity, bonds or a basket of assets. This means that ETFs can track the price of a crypto index with BTC in it.
Bitcoin ETF fate is finally going to be decided on August 10. Currently, SEC is asking for comments on the listing and trading of Bitcoin ETF introduced by VanEck SolidX Bitcoin Trust that will be catering to only accredited investors.
If SEC does give its nod of approval for the ETFs, it would mean an indirect green light to mainstream investment in altcoins as well. This would eventually bring funds in trillions in the crypto market.
The whole point is that the price drop in cryptocurrency we are seeing currently is a massive correction and the bull run is still to come and if everything goes right we will surely see $20k+ Bitcoin by this december. So, just hold tight and see how things unfold from here.
Disclaimer - The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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