Bitcoin price will likely reclaim or surpass its all-time high by the end of 2019, guesstimated Mike Kayamori.
The Quoine chief told Bloomberg in an interview that while it is difficult to predict how much time bitcoin would take to establish a new peak, he is sure it would touch it nonetheless. Adding that he believed bitcoin bottom is near, Kayamori stated that the market would not show any significant bullish corrections until the end of this year. But after the new year, a lot of catalysts could influence a sustainable rally in the bitcoin market.
“Japanese regulators are starting to open up again. They are going to approve new exchanges. They are going to approve new listings. All of these things will start from the new year,” Kayamori explained while linking the growing compliance with the influx of institutional investments into the bitcoin space.
“The global trend is to accommodate these high-frequency traders […] There is going to be this dealers-brokers who will be offering crypto to their retail customers. And there [are] these OTC brokers who will be providing services to institutional investors,” he added.
Bitcoin joined the list of worst performing crypto assets this year, especially in November during which the digital currency lost 37% of its market capitalization. Since its plunge, investors have expected the market to bottom out and rebound strongly. Nevertheless, strong resistance levels continue to cap the latest upside correction attempts, indicating that bears can still breach below the new-found support near $3,500.
The interview saw a considerable time spent on discussing the so-called bottom and how miners were discontinuing their bitcoin mining operations, citing losses due to lower-than-even bitcoin token value. While Kayamori recognized that the digital currency drillers were not able to earn back their principal investments, he thought the development, in a broader sense, was positive.
“If there are enough miners [that] are going out of business, that [means] equilibrium is near,” he said. “When you look at how markets overshoot, both up and down, you can probably say it’s close to the bottom.”
According to a recently published A.T. Kearney report, Bitcoin will likely recapture the biggest portion of the cryptocurrency market in 2019 as worthless coins call it quits. The growing regulatory scrutiny would make it difficult for new projects to raise funds more freely, bringing investors’ focus back to the original cryptocurrency, the report said.
Meanwhile, whether the Federal Reserve would hike interest rates or not should also have a direct correlation with the future bitcoin price action. Rising interest rates have cooled off speculation all across the market in 2018, not just bitcoin. Therefore, a pause in the interest rate could bring investors back to the crypto market.
Despite every strong fundamental factor, the value of bitcoin would remain unpredictable mainly because it is a new, uncontrollable asset class. Putting an original price tag on bitcoin is more about what the digital currency is today and what it could be in the future. Unfortunately, the market does not have a scale to measure that – not yet.
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Last modified: June 14, 2020 9:35 AM UTC