With the eighth month of the year right around the corner, Bitcoin seems to have consolidated its position near the $8,000 mark.
Increased Adoption and Institutional Investors are Driving Bitcoin Demand
Tech investor and entrepreneur Kin-Wai Lau believes that Bitcoin is riding another wave of enthusiasm. Speaking to CNBC, the Fatfish Internet Group CEO talked about the current state of the market, the BTC ETF saga, as well as the probable end-of-year price for the asset. According to Lau, Bitcoin and indeed the cryptocurrency market is experiencing a second wave rally. Lau also the described the wave as being “strong,” with lots of market interest and an increase in trading volume.
The Fatfish Internet Group CEO identified increased adoption and the influx of institutional money as major reasons for the market resurgence. According to Lau, market volume has increased significantly since price dipped to a new 2018 low in mid to late-June.
Bitcoin ETF possibility on the Horizon?
Lau also spoke about the recent decision by the United States Securities and Exchange Commission (SEC) to reject the Winklevoss twins’ Bitcoin ETF application. When asked about the possibility of an SEC-approved BTC ETF, Lau said:
I think it is pretty much a matter of time before the SEC approves an ETF. It is a matter of which organization is able to come up with appropriate tools for surveillance, monitoring, and the ability to create liquidity.
Apart from the availability of these tools, Lau also believes that a degree of market readiness is required to instigate the rollout of BTC ETFs. Before rejecting the Winklevoss BTC ETF, the SEC postponed its decision on another filing made by Direxion Investment.
Stabilizing the Bitcoin Market
On the subject of price volatility, Lau maintained that adoption was the principal driving force for market demand, which directly affects the asset price. On July 19, 2018, an influx of Chinese money moved the price upward. Affluent Chinese citizens looking to adopt Bitcoin as a haven for their wealth triggered an upward price movement.
As for an expert price prediction, Lau identified the $10,000 to $15,000 price milestones as a reasonable target for BTC’s end of year price. The Fatfish CEO said that there was a consensus among many experts on this price range. Lau also believed that with Bitcoin being used in more countries and the emergence of market regulations, price stability could be achieved for the top-ranked cryptocurrency.
Do you think Bitcoin is on the cusp of another price rally? Let us know in the comment section below.
Image courtesy of CoinMarketCap.com, Shutterstock
Let’s block ads! (Why?)