Par Yasin Ibrahim
Investing.com – Wild swings in the continue, with a brief attempt above $ 37,000 on Monday after dips below $ 34,000 the day before, but blockchain trading activity has never been better, and will help eventually dispel the clouds of fear, uncertainty and doubt, propelling popular crypto to $ 100,000 by the end of the year according to an expert.
“I expect to see $ 100,000 this year … we should already be close to that level based on the last halving, but we’re not there because there are confusing narratives. [y compris la réglementation] that have not yet come forward. ”Michael Venuto, chief investment officer of Toroso Investments, said in an interview Thursday with Investing.com.
“The recent BTC price action is going to subside because the commercial part of this, the part where bitcoin, other cryptocurrencies, and decentralized finance are being used to revolutionize finance is in better shape than it is. ‘has never been in history, ”added Venuto.
A halving – which halves the reward for mining bitcoin transactions and supplying newly minted bitcoins – occurs about every four years. Halving events in 2012 and 2016 had preceded the previous bullish phases of BTC.
The most recent halving event, in May of last year, reduced the block reward for bitcoin mining from 12.5 BTC to 6.25 BTC, and helped highlight the supply and demand, a structurally bullish factor for BTC.
“Based on the halving cycle, supply and demand, and retail sentiment, I don’t think we’re near the end of the upside,” Venuto said.
During the recent meltdown, the small, novice investor, who follows a trading regime based on leverage and greed, was largely prompted to panic sell, which fueled the downside. But hedge funds and institutions, which trade with leverage, may have been caught in the FOMO fever and ultimately fallen victim to margin squeeze.
Regulation, or the lack of regulation, could have something to do with bearish institutional betting.
The lack of options available to institutions to buy and hold bitcoin in an investment vehicle that fits their world, gives “more access and capacity to traditional finance to bypass bitcoin than they do.” ‘have to be buy and hold investors,’ Venuto said.
Unlike retail investors, institutions are generally not allowed to buy bitcoins directly from cryptocurrency exchanges, nor to keep them in a wallet.
Many have touted the merits of a bitcoin ETF in the United States as a solution to fill this gap. But this is unlikely to happen anytime soon, even with an SEC chairman who is well versed in blockchain technologies.
“We are in a world where the laws that govern how we treat financial instruments were written in 1940 and 1933,” Venuto said. “The US government needs to make a much bigger statement about what bitcoin is to them and whether or not it should be subject to these securities laws.”
Concerns about the environmental impact of BTC mining have also played a role in the sour bitcoin institutional sentiment. A story that has been credited in the wake of remarks by Tesla Inc (NASDAQ 🙂 boss Elon Musk in recent weeks.
“It was precipitated by the ESG movement and this notion, which was exacerbated by Elon Musk, that there are real environmental issues with bitcoin mining,” Cathie Wood, founder of ARK Investment Management, said Thursday, at CoinDesk’s Consensus 2021 conference.
But the idea that bitcoin is a polluting crypto – given the energy used to mine blocks on the blockchain – is somewhat flawed, at least in the United States, as most “American miners use clean renewable energy. “said Mr. Venuto.