How do rumors of institutional investment and the return of mainstream media cryptocurrency hype impact Bitcoin price projections?
At last! The days we’ve all been waiting for are back, or so it appears for the moment. The mainstream media hype and euphoria surrounding cryptocurrency have returned and voila, BTC is up nearly 23% in the last 7 days!
Of course, there are more fundamental occurrences happening behind the smokescreen of CNBC hype men shilling coins to millions of viewers but the fact that talking heads are excitedly discussing stratospheric future price projections after the carnage most investors endured during the last 3 months is comforting.
What’s really going on: Last week the Securities and Exchange Commission (SEC) began to reconsider applications for BTC exchange-traded funds (ETFs). Rockefeller’s venture capitalist division ‘Venrock’ partnered with Coinfund. George Soros indicated that Soros Fund Management approved plans to trade cryptocurrencies and similar whispers are being heard from Rothschild. Stratospheric price projects have returned and so far each one is supported by CNBC’s Brian Kelly. Tim Draper forecasting BTC at $250,000 by 2022, Thomas Lee says $25,000 by the end of 2018 and Dan Morehead of Pantera Capital projects $20,000 by years end.
Why is this important? Well, it could be the fulfillment of the institutional prophecy. Yes, you know the one where large financial institutions, hedge funds, and brokerages would inject nearly a trillion dollars into crypto markets, bringing market capitalization from a December 2017 high of $830 billion to 2 or 3 trillion throughout 2018.
While all of that is exciting, dependent upon your philosophy regarding decentralization and institutional whales buying up crypto, there is more…
Tax day is nearly passed and selling to cover capital gains appears to have ended. BTC transaction fees are way down and the lightning network is ensuring that transactions are quick and cheap. At its lowest, Bitcoin was down 65% from its December 2017 high and with $6,300 – $6,500 is claimed as