- Matthew Greenspan, at eToro has Tweeted that Bitcoin may be on the cusp of the most significant bull run in history.
- Evidence is mounting that several institutional investors are preparing to enter the cryptocurrency market.
- Despite a bullish outlook for Bitcoin, several top altcoins are still in the red as Bitcoin pushes forward toward $8,000.
Bitcoin Makes 20% Gains in Just 7-Days
Is Bitcoin back? Just a month ago in mid-June, Bitcoin price analysts were bracing for a slump all the way back to $5,000. However, several regulatory green lights have since seen Bitcoin bounce all the way back to near $8.000.
Is Cryptocurrency the Future After All?
Over the course of the past 14-days, the mainstream media has shifted its focus from Bitcoin mining concerns. Instead, several positive cryptocurrency narratives have started to hit headlines.
- In the United States, the Federal Reserve Bank of St Louis has announced plans to add Bitcoin, Bitcoin Cash, ETH and Litecoin to its FRED index. (A monthly collation of Federal Reserve Economic Data).
- Goldman Sachs has affirmed plans to release a USD backed cryptocurrency at the start of 2019.
- The South Korean FSC has signaled that it will soon start relaxing regulations imposed on the cryptocurrency market in late 2017.
Why Will the Next Bitcoin Bull Run be Different?
Due to the changing tide of opinion around Bitcoin, Matthew Greenspan of Cyprus based brokerage eToro has suggested that the world: “might be on the cusp of the largest bitcoin bull run in history.” Moreover, why this is the case is simple.
- Bitcoin price rises to $20,000 in 2017 were primarily driven by consumer FOMO investing. (Fear of Missing Out)
- Clearer regulation and a better understanding of how Bitcoin works, is piquing serious interest from mainstream banks and institutional investors.
- The U.S. Securities and Exchange Commission (SEC) is expected to soon approve the world’s first BTC exchange-traded fund (ETF).
If the SEC approves ETF options, this will make it possible for institutional investors to invest directly in Bitcoin. (As opposed to investors having to buy coins through exchanges like Coinbase.)
Which will be the Best Altcoins to Invest in Going Forward?
Is cryptocurrency the future? As far as Bitcoin is concerned, the immediate future looks bright. However, unlike with previous bull runs, many altcoins may not get the opportunity to ride on Bitcoin’s coattails.
At present, top market cap coins like Ethereum and Litecoin are struggling to gain momentum as Bitcoin recovers. As for why this is, there are several reasons.
- Institutional investors will be less likely to invest in unproven coin concepts and ICOs, as consumer investors have been.
- In 2017, only 20% of ICO investments returned a profit to investors.
- Coins like IOTA and EOS have fomented controversy recently. – Specifically, by failing to deliver on key technological promises despite considerable upfront investment.
Will the Altcoin Market Recover?
Without a doubt, several altcoins will eventually recover if and Bitcoin does breakout. However, when choosing altcoins to invest in, investors may now want to exercise more caution when structuring their portfolios.