John McAfee’s $8,000 Prediction Coming To Be True?
After facing really tough times since the start of the year, Bitcoin seems to have made a comeback as it’s close to hitting $8,000 as of July 24. As the price rises, people cannot help but think of the prediction made by John Mcafee, a cryptocurrency enthusiast known for his wild predictions, via his tweet “The Bull Market IS Coming.”
The tweet was made a week ago before the price rise which has also led many analysts at Forbes to believe that a bull run resembling the December 2017 bull market can also come and take the price of $20,000 and beyond.
A survey conducted by the Dutch Bank via Ipsos reveals that interest in Bitcoin in Europe is expected to double as two-thirds of the Europeans have good knowledge about it. The survey was conducted by taking into account the views of 15,000 people spread over 13 countries.
Along with the 3.67% increase in price, the “Bitcoin Dominance Rate,” which quantifies the effect of Bitcoin on the whole cryptocurrency market is up close to 47%. Coinmarketcap also reports that the rate is the highest that we’ve seen since December last year.
While nobody can predict accurately if it’s true, there are certain events which can explain the rise.
The most obvious cause of a bull run seems to be the expectation of an ETF approval by the SEC. VanEck, a global investment money manager based out of New York and SolidX, a blockchain company have filed ETF applications with the SEC through the Chicago Board Options Exchange (CBOE).
The ETF is one of the most important considerations for the crypto ecosystem since it has the potential to bring a lot of institutional money which would most likely pump the price up.
An unnamed source from the CFTC told the ICO Journal about the likelihood of the ETF getting approved,
“I would call [the likelihood of approval] 90% at this point. The crypto markets have moderated and regulators have watched the lack of drama surrounding bitcoin futures across several global exchanges. The price moderation and adoption of a peer product is what the conversations have centered around. In January we were justifiably concerned about a bubble and the harm a quickly approved product could attract speculators and create losses that led to significant lawsuits. Now, those factors seem to be mitigated significantly.”
Another significant news that is exciting to the bulls is the entry of Blackrock into the market. As reported originally by London’s Financial News, Bitcoin’s price continued to increase as the world’s largest shadow bank, Blackrock, has begun the exploration of cryptocurrencies and blockchain to serve its customers’ demands.
David Solomon, the new chief executive of Goldman Sachs also said that the bank is already offering publicly traded derivatives tied to Bitcoin to their clients.
The international watchdog, the Financial Stability Board (FSB) said that cryptocurrencies “do not pose a material risk to global financial stability at this time.” The FSB has members from the G20 countries. This shows that the governments are not keen to ban or hinder the transactions going on in the ecosystem which can be yet another sign for the prices to jump higher.
Having said that, the price is quite unpredictable owing to rapid developments in the cryptocurrency space which lead to rapid changes in the price as well. Though the news seems positive right now, it is wise to anticipate a bear market owing to factors such as rejection of Bitcoin ETFs.