5 Possible Reasons for the Next Bitcoin (BTC) Boom
So many cryptocurrency experts and analysts predict that Bitcoin (BTC) will boom in 2018 and beyond. The increasing bullishness may be a result of the improving sentiment about crypto or the belief that the best is yet to come. Historically, Bitcoin has rallied after every major correction, researchers putting it at around 70- 85 days.
With the current bear market expected to be coming to an end, the belief is that the next time prices rally, it could be big. Crypto bulls like Tim Draper, John McAfee, and Tom Lee have all predicted astronomical price rises for BTC. Even though some are outlandish, and may not happen, here are a few reasons why it’s possible what they predict could happen.
Clarity from regulators
Cryptocurrency has been under a lot of scrutinies in recent times, with authorities keen to see regulations in place. It’s a fact that the crypto industry itself hasn’t helped much- cases of scams and Ponzi schemes affecting the entire industry.
Yet, with regulators like the US SEC coming out to clearly state what they are after, we should see a lot of sanity and seriousness within cryptocurrency. That shift in attitude, from vilifying all cryptocurrencies, to stating that they are ready to support genuine crypto will bring calmness and encourage mainstream adoption.
Wall Street and other traditional companies
The market as a whole could benefit from a gradual acceptance and willingness to invest in crypto from Wall Street. Bitcoin bulls are increasingly becoming convinced that institutions will soon flood crypto with funds, removing the detached and aversive attitude that has been the trend for years.
Even though a few heavy hitters like business mogul Warren Buffet continue to warn against Bitcoin, the general approach is changing and that could result in Bitcoin’s boom.
Many of the attendees at the Consensus 2018 in New York were institutions aligned with traditional companies. We are likely to see more traditional companies beginning to trust the ecosystem. If more institutional money comes into crypto, the next boom could be around the corner
That explains some of the predictions that have put BTC value above $20k by December 2018.
Although his prediction of a Bitcoin rally after Consensus 2018 failed to materialize, researcher Tom Lee of Fundstrat said that:
“Crypto still faces significant internal resistance and hurdles within traditional financial institutions, but it is encouraging, nonetheless, that a large share of incremental attendance are financial institutions.”
Bitcoin is trusted more than any other currency
Analysts predict that almost 90% of the altcoins will fail. Though there are fears about cryptocurrency in general, the feeling is that BTC is more secure and mature as a currency. If huge money is to come to the crypto space, most of it will be put in Bitcoin. The leading crypto was designed as a borderless currency that isn’t under any central government or financial body’s control.
Even though this is true of other digital currencies, none has the global appeal and trust. Although taken as a store of value more than an everyday payment currency, BTC sees more transactions than most of the other coins. With improvements in its transaction speeds and fees, the majority of users would prefer BTC than many other coins.
Economics of Scarcity
The increasing demand for Bitcoin (BTC) against the limited supply will lead to the long-term boom. Short term, being used as a store of value is driving more investors to hold. This factor is likely to see the prices skyrocket even as many more experts predict a bitcoin rally.
The role Bitcoin Futures
It is the belief of many within crypto circles that factors that don’t relate to the crypto market directly will also play a role in BTC value rising. The result of such factors as Bitcoin Futures will act as a bridge for more adoption and positivity could result in a trend similar to the one at the end of 2017.
Bitcoin Market and price today
Bitcoin (BTC) has dropped in value more than 50% since its all-time high of about $20k last December. Currently trading at $8513 to the dollar, the crypto has gained by 2.92% in the last 24 hours. However, that’s not enough to pull it out of the red over the last 7 days.
Its $145 billion market cap gives it a dominance index of 37.2%. The expectation is that the sideways price swings will steady and a nice upside could materialize sooner.