The cryptocurrency market cap recently dipped below the $400 billion mark, as bitcoin itself fell to little over $6,000, before its price started bouncing back. At press time, the cryptocurrency market made a bullish pivot, as US regulators signaled they’ll take a cautious approach to cryptocurrency regulations during a high-profile Senate hearing.
At press time, according to data CCN.com’s price index, bitcoin is trading at $8,387 after rising 24.5 percent in the last 24-hour period. This may be only the beginning of the flagship cryptocurrency’s rise this year, as according to CNBC experts see bitcoin go on a bull run greater than last year and hit $50,000.
In fact, experts believe the cryptocurrency ecosystem may surpass the $1 trillion mark, as other cryptocurrencies may also see significant gains.Thomas Glucksmann, head of APAC business development at cryptocurrency exchange Gatecoin, noted that regulatory recognition, technological development, and the entrance of institutional capital will contribute to this year’s push.
“Increasing regulatory recognition of cryptocurrency exchanges, the entrance of institutional capital and major technology developments will contribute to the market’s rebound and push cryptocurrency prices to all new highs this year,”
To Glucksmann, there’s no reason not to see bitcoin push to $50,000 by December. The technology he referenced was bitcoin’s much-anticipated Lightning Network (LN), which recently surpassed a major milestone as by reaching 1,000 mainnet payment channels.
Another possible catalyst for the recovery could be the release of a cryptocurrency backed instrument listed on a major exchange. While both CME and CBOE already launched bitcoin futures, Nasdaq recently revealed it is “continuing to investigate” these products.
As CNBC points out, there is still no bitcoin ETF on the market. An ETF, exchange-traded fund, would allow people to trade bitcoin without having to buy the cryptocurrency. Recently, bitcoin ETF applications were forced to withdraw at the request of the US Securities and Exchange Commission (SEC).
Jamie Burke, CEO at venture capital firm Outlier Ventures, noted that the astounding price rises the cryptocurrency market saw last year could be topped this year. He stated:
“We believe after February the market will likely go on a bull run comparative if not greater than last year potentially reaching the trillion-dollar mark before a proper crypto winter sets in where the market becomes more focused on proper market fundamentals.”
Although some experts see bitcoin hit $50,000, some believe the cryptocurrency has no fundamental value. Others see potential in cryptocurrencies that can be used to build new blockchain applications, such as NEO and Ethereum.
Mick Sherman, CEO and co-founder of data science company Hercules Tech, said cryptocurrency like IOTA, NEO, and Ethereum are the ones to keep an eye on, as they are creating platforms developers can build on.
“Utility tokens and assets with a working platform and a clear-cut reason for requiring both a blockchain and their own token, are more likely to appreciate in value this year. Some of these cryptoassets will not be used for years, meaning they have no utility value,”
Sherman further warned that blockchain technology is incredibly hyped, and as such we may see “several more bubbles.” This, before we see “viable blockchain-based assets.”
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Last modified: June 14, 2020 9:34 AM UTC