This year so far has been the year of huge corrections and regulations for bitcoin and the overall crypto market. The bitcoin price is down by nearly 70% from its peak of $20000, as the world’s largest cryptocurrency is now forming a new base at $6000. However, this hasn’t stopped many bitcoin enthusiasts from making predictions for the next BTC bull run.
Hedge fund titan and bitcoin bull Mike Novogratz predicts that bitcoin price will set a new record in 2019 breaking all previous highs. Novogratz is betting big on institutional investments to fuel the bitcoin price surge in 2019. Just like we saw the retail FOMO (fear-of-missing-out) in 2017, we will see institutional FOMO in 2019, predicts Novogratz.
bitcoin Won’t Cross $10000 By the Year-End
Last month, in an with CNBC, Novogratz said that institutional players have started to chip-in the market. However, he also added that there is little probability that bitcoin will cross $10000 this year. Novogratz reiterated his opinion during his latest talk with .
Novogratz said: “bitcoin has to take out $6,800, and after that, we could end the year at $8,800 to 9,000”. He went to add that “By the end of the first quarter [of 2019], we will take out $10,000. And after that, we will go back to new highs — to $20,000 or more.”
When bitcoin was trading at its peak last December 2017, Novogratz had predicted the crypto to touch $40000 this year. However, things have turned out to be quite opposite with a massive cut in the crypto market valuations. Not only Novogratz, but many other crypto experts are correcting their targets with the changing regulatory environment in the crypto space.
Much recently, popular crypto analyst Alex Krüger made important price predictions for bitcoin. The are made based on upcoming important events like ICE’s Bakkt platform and the arrival of CBOE bitcoin ETF.
Not only financial organizations but also endowments from big universities like Yale, Harvard, and Stanford have parked huge sums of money in bitcoin.
Institutional Investors Awaiting Clear Regulatory Measures
Although regulations were earlier seen as an interference in the crypto market, there are likely to bring stability in the volatile crypto environment. Proper regulatory measures will ensure a safe and secure environment for crypto investors. In fact, the lack of regulatory measures is the most likely reason for slow institutional entry.
Recently, Larry Fink, CEO of BlackRock – the world’s biggest asset management company – said that they won’t consider launching a bitcoin ETF unless and until the industry is “legitimate”.
“I wouldn’t say never, when it’s legitimate, yes,” said Fink. He further added: “It will ultimately have to be backed by a government. I don’t sense that any government will allow that unless they have a sense of where that money’s going for tax evasion and all of these other issues.”
Several government bodies are now working to legitimize their local crypto market by introducing new regulatory measures. More clarity is likely to emerge regarding this matter in the coming months.
The Abu Dhabi Securities Exchange has released a paper aimed at creating the infrastructure necessary to accommodate transactions with cryptocurrency-based assets and facilitate the implementation of distributed ledger technologies in the emirate. The platform wants to support financial institutions in their efforts to introduce services related to innovative investment instruments.
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ADX Shares Views on Cryptocurrency Regulation
The paper, in which the Abu Dhabi Securities Exchange (ADX) sets out its views on a regulatory framework for cryptocurrencies and digital assets, has been produced in cooperation with the emirate’s Central Securities Depository. The organization has been tasked with examining the phenomenon and participate in the creation of a safe and efficient environment for both the issuers of these assets and potential investors. The document has been prepared under the auspices of the International Securities Service Association.
According to a report by WAM, the state-run news agency of the United Arab Emirates, the exchange has been working to identify the “technical and operational criteria required to issue cryptoassets,” as the new asset class is seeing rapid development in the region. ADX also wants to provide a reliable reference for financial institutions trying to manage the transition from traditional assets to cryptocurrency-related instruments.
Abu Dhabi to Upgrade Market Infrastructure
Commenting on the release, the chief executive of ADX, Rashed Al Blooshi, noted the importance of upgrading Abu Dhabi’s existing financial market infrastructure. He also highlighted the need to incorporate comprehensive standards of governance within traditional systems in order to improve the quality of the infrastructure, prevent market fragmentation and increase investor confidence.
“Financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of cryptoassets,” Al Blooshi pointed out. He added that ADX is embracing innovative technologies and is constantly looking to capitalize on fintech advancements, particularly those regarding cryptoassets. The exchange is trying to optimize the benefits offered to its investors and stakeholders, the executive said.
In recent years, the region of the Arab Peninsula has been opening up to cryptocurrencies and related products and technologies. In January, the Abu Dhabi Global Market, an international financial center located in the heart of UAE’s capital, the adoption of a regulatory framework for cryptocurrency activities such as those performed by trading and custodial platforms.
This past September, the UAE Securities and Commodities Authority a plan to adopt regulations for initial coin offerings (ICOs). The watchdog recognizes the issued tokens as securities. The launch of the first cryptocurrency exchange registered in the United Arab Emirates has been announced this week.
What do you think of ADX’s regulatory initiative? Share your thoughts on the subject in the comments section below.
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