As the price of bitcoin surpassed the $8,000 region, analysts and experts in the cryptocurrency sector have become more positive regarding the mid-term trend of major digital assets.
Spencer Bogart: The Bitcoin Low Might Already Be In
It was recently revealed that Mastercard had secured a patent for linking fiat bank accounts and cryptocurrencies. As reported by NewsBTC, market analysts at CNBC, along with Tom Lee of Fundstrat, both saw this as a bullish sign, with Lee stating:
“I think something like the Mastercard news is positive because it’s really validating the idea that digital money or blockchain-based money is a valid form of transactions.”
However, Spencer Bogart, a partner at venture capitalist firm Blockchain Capital, recently made an appearance on CNBC Fast Money countering the positive sentiment around the Mastercard news, proposing that there are alternative reasons why Bitcoin is set to continue upwards.
As #bitcoin gets its groove back this month, @CremeDeLaCrypto sees the #crypto headed back to highs pic.twitter.com/qo7R5nPoek
— CNBC's Fast Money (@CNBCFastMoney) July 25, 2018
Speaking on the Mastercard patent, the cryptocurrency expert laughingly brushed off the news, stating:
“I think that the way to fail in crypto is to think that IP and patents are going to be your path to success… Look, I think that any of the incumbents are going to have a hard time in this space. It is very difficult, it’s a dynamic space that you will have to be focused on. So I think it (blockchain/crypto) is a quintessential disruptive innovation that’s going to favor startups over entrenched incumbents like Mastercard.”
Keeping congruent with the sentiment of other industry leaders, Bogart later spoke on Bitcoin’s most recent run-up past $8,000, noting that he sees further upside for the world’s foremost crypto asset. He noted:
“It’s possible that we’ve seen the lows, (but) I’m definitely expecting to see new highs. I mean listen, I think the prior times that I’ve been on the show I’ve said to expect to see new lows before new highs, but that low might already be in.”
Bogart then cited a multitude of catalysts that could see Bitcoin head higher, namely global trade and currency wars and the potential for a Bitcoin ETF approval.
However, the partner at Blockchain Capital stated that “any number of catalysts” could signal bullish movements for the cryptocurrency market, indicating that there may be other less-influential stimuli that could push Bitcoin over the edge into a zone where buying pressure is rampant.
Enthusiastic About Cboe Bitcoin ETF
He went on to talk about the upcoming ruling for the CBOE-backed Bitcoin ETF, stating that “everybody is reading tea leaves” about the eventual verdict from the SEC, making it clear that no one knows for sure what regulators will decide.
Making a “tea leaf” prediction himself, albeit with a higher level of reasoning, the industry leader said that he is gauging for a 2019 release for the maiden cryptocurrency ETF, expecting regulatory bodies to take some time to reach a final verdict.
As many ETF naysayers like to point out, the SEC is likely to cite consumer protection laws and custodial issues as the primary reason to delay or deny a cryptocurrency-backed ETF.
Nevertheless, Bogart stated that retail and institutional investors are already gaining exposure to the cryptocurrency industry through platforms like Coinbase, implying that an SEC denial due to consumer protection risk would be unwarranted and baseless. He put it best when he said:
“The cat is already out of the bag here… So these things (ETF comparable investment opportunities) already exist on the market. That innovation is going elsewhere if the SEC doesn’t kind of get on board soon.”
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