Bitcoin may not be anywhere near its all-time high last December, but many investors are now optimistic yet again about Bitcoin’s price. For instance, many have questioned Tom Lee’s prediction that Bitcoin is going to surpass its all-time high this year. During that time, even after the Consensus conference, Bitcoin’s price remained bearish. However, things are quite different today.
According to Fundstrat co-founder Tom Lee, “We believe the regulatory picture is now improving—best evidenced by Coinbase and Circle ‘running towards’ regulations”. He also mentioned that “We are basing this on the notion that Coinbase and Circle would only take these actions if such as the case”.
Coinbase has been reported to be gunning towards licenses from the US cryptocurrency exchange. With its effort, it could potentially make Coinbase as an SEC-regulated broker-dealer. And not only that, the company is also working closely with Japan’s regulators.
David Hanson’s View on Bitcoin
David Hanson who is a blockchain expert and CEO of gaming platform Ultra mentioned that “I believe Bitcoin’s price will continue to fluctuate between $6500 and $8,500 in the coming weeks”. He added that “In the medium-to-long term, Bitcoin’s value should go up, as big institutions enter the crypto space in a bid to gain first-mover advantage, further legitimizing the market”.
Warren Buffet Remains Critical of Bitcoin
However, despite the bullish forecast of Bitcoin, Warren Buffet remains a critic of cryptos. He voiced the same opinion this time around together with JP Morgan CEO Jamie Dimon. Dimon criticized cryptocurrencies last January as “fraud”. However, Dimon backpedaled when he said that “blockchain is real”.
Regulatory Landscape
The regulatory landscape has a lot to do with this optimistic view of Bitcoin price. Iqbal Gandham who is the UK managing director of eToro says that “As the regulatory landscape clears up we can expect far more investors, including big ticket institutions, to make their first cryptocurrency investments”
He added that “For the first few months of this year, the crypto industry has been jogging along at a relatively slow pace, waiting for the opportunity to stretch into a sprint. This may just be the moment”.
New York is at the forefront of crypto regulations today. Regulators plan to discuss everything that pertains to the market form fintech to exchanges. In addition to this, SEC chairman Jay Clayton recently clarified the position of the agency when it comes to cryptocurrencies and ICOs. He mentioned that ICOs are considered securities, while cryptocurrencies are a replacement to fiat currency.
Regulatory clarity is doing good things for Bitcoin. In fact, crypto-related businesses working hand in hand with governments can be considered a good thing since now, investors don’t have to worry whether or not crypto industry will be banned all of a sudden. But of course, there are a lot of issues that should still be addressed within the niche from hacking to potential use in money laundering, expect that there are still a lot of other regulatory changes waiting to happen in the coming months. But as for the short-term forecast in Bitcoin price, it seems that things look bullish at least for now.
