Bitcoin’s price has risen by 9 percent in the previous 24 hours, regaining much of the ground lost during this week’s market fall. The broader crypto market has recovered as well; The overall market capitalization of all cryptocurrencies is now $1.7 trillion, up 7.29 percent on the day and up from a low of $1.55 trillion earlier this week.
The present slump in crypto values, according to a top executive at Bitwise Asset Management, is only transitory.
In a new interview with Yahoo Finance, chief investment officer (CIO) Matt Hougan predicts a surge in crypto prices in the second half of the year. The drop in crypto pricing, according to Hougan, is due to a variety of factors.
What are the three factors Impacted for BTC’s decline?
Three factors are driving the current downturn, all of which will be resolved. One is the wider market change to a risk-off market, which is driving all kinds of risk assets, including crypto, to the surface. I believe we’ve adjusted to this new reality to a large extent.
The second item is Vice President Biden’s executive order on cryptocurrency, which is set to be released this week. That, I believe, will be a relief once we get over it. After that, there’s some tax-related selling.
I believe there are some short-term roadblocks ahead of us, but when I look at the underlying patterns, I’m very optimistic about where we’ll be by the end of the year.
According to sources, the Biden administration is planning to issue an executive order requiring US government agencies to investigate digital assets and design a regulatory policy for them.
Bitcoin (BTC) might reach new all-time highs, according to Hougan, due to positive developments in the flagship digital asset and the broader cryptocurrency industry.
He wouldn’t be surprised if [Bitcoin] challenged and perhaps surpassed prior all-time highs if things continue to go well.
If a Bitcoin ETF is allowed, here are some examples of what that could mean. If we see sensible regulatory outcomes coming out of Washington, D.C., we will be pleased.
And if we see broader good trends in institutional use of cryptocurrency. If we see those kinds of things, he believes we will see new all-time highs by the end of the year.
