Bitcoin hasn’t made much progress in recent months, with some suggesting that its low volatility is a sign that it is reaching a bottom.
Bear Market is Getting Tired
The number one cryptocurrency is currently valued at $6,480, according to CoinMarketCap. Apart from a rise to over $8,000 in July and $7,000 in September, it has remained in the $6,200 and $6,800 price range since.
For some, this signals that Bitcoin is reaching a state of maturity. According to Mike McGlone, a Bloomberg Intelligence analyst, the low volatility is “a sign of speculation leaving the market and eventually a bottoming process,” reports Bloomberg.
Speculation was largely seen last year due, in part, to the increasing interest in initial coin offerings (ICOs) and the fear of missing out (FOMO). Now, though, it seems that speculation is seeing a downward trend.
Charlie Morris, multi-asset head at Atlantic House Fund Management in London, agrees. He added that the 10-month-old bear market is slowing down, and that he’d be “bullish for the next major move.”
Compared to the end of 2017, the crypto market has seen a dive in prices. Bitcoin, valued at nearly $20,000 mid-December, hasn’t seen anything close to that. It did see a near $12,000 value mid-February after dropping to $6,200 at the start of the month. However, the closest it has got to reaching $10,000 was in May.
The fact that Bitcoin’s price seems to be finding a level couldn’t come at a better time. Next week marks the currency’s 10th birthday. The market also seems to be considered by major players in the finance sector such as JPMorgan and Goldman Sachs. Both of these Wall Street banks are considering offering crypto custody solutions aimed at institutional investors. If they go ahead, this could have significant implications on the industry in the long-term.
Fidelity Investments has already launched its own crypto custody service for Bitcoin and Ether.
Regulation May Drive Adoption
Regulation could also aid the market. Even though it may go against the decentralized nature of the sector, it would give potential investors more confidence to invest in it.
Paris-based Financial Action Task Force (FATF) has already said that it will launch guidelines for crypto regulation by June 2019. Albania is also considering its own regulations to attract new investment to the country.
According to Jeremy Allaire, CEO of Goldman Sachs-backed startup Circle, a global standard of crypto regulation is needed. He also thinks token offerings should be clearly defined while robust rules are needed to tackle market manipulation.
Do you think Bitcoin has reached a level of maturity? Is it reaching a bottom? Let us know in the comments below.
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