Three reasons why Bitcoin isn’t dead yet
At the time of writing this post, the Bitcoin is under the $6k mark, as per coinmarketcap. However, it is expected to reach $10k mark again in near future.
Kelly, who’s a CNBC fast trader, said: “during a period in which the market is extremely bullish and optimistic, it is better to sell and eye a timely opportunity to enter and when the market is overly pessimistic, it is wise to look for a position to enter.”
That being said, the three probable reasons why Bitcoin ain’t dead are
- Investors are negative about the future of Bitcoin, yet haven’t really withdrew their investment
- Japanese cryptocurrency market has been growing positevely, lately.
- Mt. Gox liquidation will take time, at least till 2019
Speaking of negative impression of the cryptocurrency markets, kelly says that major changes will be happening that will get worse to get any better in the future. Once it bottoms out, it will only improve for good. Kelly expectes the price to rise sharply in the fourth quarter of this year.
Furthermore, Japanese government has tightened regulations, clear the cryptocurrency market and regulate the Japanese cryptocurrency sector, throughout the nation for a good development with a long-term effectiveness.
“Japanese exchanges were ordered to improve business conditions [by the government]. It’s actually a good thing. Short run it’s going to be a little tough because they’re stopping new accounts from coming in but actually, they’re cleaning up the system. They’re making sure it’s more robust. Making sure it’s better for people.” Kelly said
Speaking of regulation in cryptocurrency sector, South Korea, which third largest market for cryptocurrencies, behind the US & Japan, have already started regulating cryptocurrency in their nation. The regulations are planned to happen with cryptocurrency exchange as a bank, this way, the hack attacks and money laundering will be under control. While all this happens, legitimizing cryptocurrency sector to safe-guard the investors & set industry specific standards for business, that do not allow any illegal aspect.
Additionally, Mt. Gox was the major reason why Bitcoin couldn’t make it through 2018 that well. Several Mt. Gox sell offs of several bitcoins resulted in the market to crash, that led to BTC losing the momentum to rise to greater heights. Kelly right pointed out that the Mt. Gox sell offs being postpond to 2019 is one of the major factors that is pulling BTC backfoot.
“Mt. Gox is going into rehabilitation and they’re going to distribute the rest of the $1 billion worth of bitcoin. But here’s what is great about that, they’re not going to distribute it until quarter 1 of 2019. All of the sudden everyone thinks there is going to be a wave of selling. Not happening now,” Kelly explained.
That being said, if factors predicted by Kelly are right, they could act as a catalyst and shoot up the BTC price in the next quarter. Also, the positive developments in Japanese and South Korean markets will definitely help the cryptocurrency markets across the globe feel the affect and grow to the top.