Staring at the Face of the Next Bitcoin Bull Run?
The cryptocurrency markets have been ramping up over this past week. All the build up leaves us with one question: “Is this the next bitcoin bull run?” Let’s look at some of the indicators and possibilities, as well as the reasons for why we may be at the beginning of one now. Obviously, nearly everyone wants to believe we’re about to hit the next bitcoin bull run, but are we actually? Let’s go over the facts.
Bitcoin’s Strong Week
If you’ve been paying attention to the cryptocurrency markets this past week, then it’s coming as no surprise that we’re talking about this. Starting at the beginning of the week, bitcoin (BTC) has been consistently gaining.
For the first time in two months, bitcoin was back above the $8,000 mark. At the time of writing, bitcoin is currently trading with a global average just shy of $8,200. This is a substantial gain from where bitcoin has been in past months.
If you’re not up to date on the reasons why bitcoin has been up over the week, then consider reading our explanation of the factors here.
That’s Great News, But…Bitcoin Bull Run?
Right, so bitcoin being up is great news, but bitcoin has been up before in the past. The question is, of course, are we about to have another bitcoin bull run? A bull run like the end of 2017 that skyrocketed BTC’s price up to just shy of $20,000 by the end of the year.
Well, unfortunately, this isn’t the type of question with an easy answer. There’s no way to magically know if we’re about to experience the next big BTC run up; sorry to disappoint. But what we can do is look at what the experts are saying and you can decide for yourself.
While expert analysis and opinions are great, there’s always going to be a need to decide for yourself before investing. Like the rest of us, even expert analysts and cryptocurrency professionals are still only human and are not infallible. With that being said, let’s take a look.
2018 Bitcoin Forecast
In an email exchange with CNBC, head of APAC business development at Gatecoin, Thomas Glucksmann, told the outlet that:
“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…There is no reason why we couldn’t see bitcoin pushing $50,000 by December.”
Glucksmann’s discussion with CNBC was at the beginning of 2018, and so far we’re starting to see some of those. One of the reasons for the bitcoin price bump this past week has been in response to Blackstone’s potential institutional interest in cryptocurrencies and blockchain technology. That’s definitely good news for investors.
However, one of the other indicators Glucksmann looked to as a positive sign was marketable investment vehicle, like a crypto-based ETF, that would allow institutional investors an obvious entry point. Glucksmann stated:
“One possible appetizer for the bulls, or the catalyst for the recovery, will be the release of another cryptocurrency backed instrument listed ona major exchange. There are several candidates in the pipeline, it’s only a matter of time until we have a cryptocurrency-backed ETF (exchange-traded fund).”
Unfortunately, just yesterday the SEC rejected the Winklevoss brothers’ bitcoin ETF application. However, ending remarks from the SEC weren’t entirely negative. In fact, the commission went out of its way to clarify not that they have an issue with a cryptocurrency-related investment vehicle, but the way the exchange requesting the appeal had established it. There’s still hope in the future.
So, what’s going to happen in the future? From the looks of things, our best bet is certainly going to be that of cautious optimism. While many are confident that we’re going to be experiencing a bitcoin bull run in the future, it’s difficult to tell when exactly it’s going to start.
If there’s one thing most analysts do agree on, it’s that the long term trend for bitcoin is bullish. There are so many reasons to bank on bitcoin for the long run, the only truly difficult part is trying to isolate the beginning of the shift.
The long term view, though? Bullish on Bitcoin.