Bitcoin’s Price Highest in Months, Expected to Go Higher

It’s been a great couple of weeks for the bitcoin price. The world’s largest cryptocurrency had added almost 20% to its value in the last seven days.

That has taken its market capitalisation to US$131 billion.

Staggering results for such a short period of time.

Even though the cryptocurrency is struggling to regain the hype and rapid growth it saw during the end of 2017, this added value is still an incredible feat.

The latest surge in bitcoin’s price has been heavily influenced by a host of good regulatory news from countries around the world and signals that institutional money is eyeing bitcoin as a way to cut costs and make returns for investors.

And this may not be the end of it.

There are predictions going around stating that the bitcoin price could surge again, even as soon as next month.

Some experts believe that the price could go above the $10,000 mark and beyond, despite a worrying warning over bitcoin’s future from the European Union last week.

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These experts aren’t making these predictions without merit

The U.S. Securities and Exchange Commission (SEC) is currently deciding whether to approve a bitcoin exchange-traded fund (ETF), a request filed through the Chicago Board of Exchange (CBOE) by New York-based VanEck and blockchain platform SolidX.

If approved, a bitcoin ETF would mean people would be able to buy into bitcoin without having to deal with clunky exchanges that often struggle with cumbersome regulation and lack of public trust.

Some are hoping that a bitcoin EFT will reverse the recent bitcoin downward spiral. Some of its biggest advocators are projecting the price may go far above last December’s near US$20,000 highs.

You only have to look at the first gold EFT to see the potential.

The first gold EFT was introduced in 2003 by the Rothschilds and the Deutsche Bank.

This resulted in a 300% increase for the price of gold. If bitcoin gets a similar boost, the price could climb as high as US$22,500 per coin.

However, this needs to be taken with a grain of salt.

Volatility always plays its part 

There was a proposal for a bitcoin EFT, made by the Winklevoss twins, that was rejected by the SEC last year due to the volatilely of bitcoin.

Bitcoin’s volatilely has always been one of its biggest drawbacks, and is something that doubters of the currency cling to.

This has improved considerably since last year, however it still remains more risky than the majority of other commodities and currencies. However,  interest from established financial institutions has helped the cryptocurrency improve its image.

But this isn’t putting a stop to bitcoin’s surge.

Bitcoin could get EFT approval as early as 15 August, 2018, with comments submitted to the SEC earlier this month coming back as overwhelmingly positive.

With the dust still settling on the last boom in price, be prepared to see another in the not-so distant future.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

PS: Free Guide: Cryptocurrency expert’s three-step guide on how to buy your first bitcoin. Get started today with the ‘How to Buy a Bitcoin’ report here.


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

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