It doesn’t take a genius to see that Bitcoin has been lingering in the bear territory for too long. However, Ambrosino Brothers’ analyst Todd Colvin said that there’s one thing that Bitcoin needs for it to become a rampaging bull once more.
The One Thing
In an article published by CNBC, Todd Colvin said that considering the downward trend, “it’s very difficult in the short term to be bullish.”
For Colvin, the one thing that Bitcoin needs for it to turn from bearish to bullish is clarity, especially on security, regulation, and accessibility. Once Nakamoto’s finest creation has achieved clarity in the said areas, it will not be difficult to entice the currently risk-averse crowd into using the crypto.
For instance, June saw one of the worst hacks on cryptocurrency exchanges Coinrail and Bithumb, resulting to an almost $1000-price drop. This definitely does not encourage people to get involved with Bitcoin, as the threat doesn’t seem to have been averted yet. For this, government intervention might be helpful. However, “the government doesn’t really know how to define or quantify what Bitcoin is, Colvin explained. “They don’t call it a security, so it doesn’t fall under the SEC umbrella. It’s very confusing.
Finally, the issue of accessibility. Colvin acknowledges the fact that there is an undeniable demand for cryptos. It just so happened that people are finding it hard to get their hands on it. “More accessibility will bring higher Bitcoin prices over the long term,” he said.
Absolutely a Good Thing
Blake Estes, Alston & Bird LLP’s co-leader in blockchain and Distributed Ledger Technology (DLT), seems to support the explanation made by Colvin, even though “for chief investment officers, there’s only downside risk in cryptocurrency.”
However, “Digital currencies are absolutely a good thing,” Jevans maintained.
As of the time of writing, Bitcoin is trading at $6,388.26 at CoinMarketCap.