Everyone is rejoicing now that Bitcoin is holding steady above $8,000. But are we out of the woods just yet?
Here are some of the pros/cons I’ve put together of recent developments that could impact near to mid-term prices:
1. US Government Regulation
PRO
In recent remarks Treasury Secretary Steven Mnuchin said he was focused on making sure ‘bad people’ couldn’t use crypto to dodge US law.
If the US goes after criminals while leaving everyone else alone, that would be the best of both worlds.
CON
But can we really believe that? At a recent Senate Committee hearing Jay Clayton, who chairs the SEC, said “we may be back with our friends from Treasury and our friends from the Fed to ask for additional legislation.”
Kinda cryptic. We’ll have to wait and see.
2. Yo-Yo Crypto
PRO
Lost in the recollection is the fact that Bitcoin went from hovering around $6K back up to over $8K. People still believed in its value, even in the middle of a free fall. If that doesn’t prove it has staying power, nothing does.
CON
Watching the floor bottom out was still really unsettling. People aren’t likely to soon forget it. We’ll have to wait and see if the appetite to drive prices back up near peak levels is there.
Source: https://www.coindesk.com/price/
3. Bear Market Runs Its Course
PRO
Pantera Capital CEO Dan Morehead was recently quoted in CryptoCoinsNews as saying crypto as a whole is undervalued, and that we should soon be cycling out of the (then) 52 week old downturn.
Source: https://www.ccn.com/cryptocurrency-market-steadily-rebounds-surpasses-450-billion-valuation/
CON
52 weeks is a long time for a bear market. Crypto is still not as established as other asset classes, so investors might be more skittish to pump money back in after such a long downturn
What do you think? Are we at the end of the bear market?
