In times when cryptocurrency markets are experiencing a relatively significant dip, some influential voices continue to sound optimistic. We cover these opinions in today’s edition of Bitcoin in Brief. Of course, positive predictions are almost always balanced by some negative expectations; in this case they are part of a short-term prognosis.
Soon after tweeting that “institutional investors are preparing to enter the cryptocurrency market with a vengeance,” cybersecurity guru John McAfee issued another bullish prediction. Focusing on short term analysis this time, which he admits is not his favorite, he turns attention to several events that may influence the cryptocurrency market – which, in his words, “will turn before June 12.”
According to McAfee, the “Korea deal is done and Trump will sign the documents in Singapore on 12 June […] The various noises being made are propaganda for domestic consumption,” he notes. After Singapore, the software businessman expects a visit by the US President to Japan, where “talks on creating a gold backed US currency will commence.”
Bitcoin (BTC) will surpass $15,000 in June, but will dip in July, McAfee predicts. His post also features several altcoins like golem, docademic, bezop, bitcoin private, and EOS. McAfee, who is a known supporter of cryptocurrencies and their adoption, has previously stated that the price of bitcoin will reach $1 million per coin by the end of 2020.
In recently recorded video, the internet security expert also talks about “the war we are all engaged in.” The banks, the government and the US Securities and Exchange Commission have declared war on crypto, in his judgement. In a rather calm tone, McAfee advises crypto enthusiasts to take action – write their congressmen and press banks and credit card companies with demands for crypto transactions. John McAfee calls on his followers to also write the SEC and ask “to leave us alone, because we are not a security […] we are a currency.”
McAfee is not alone in the optimists’ camp. According to blockchain venture capitalist Spencer Bogart, bitcoin is still worth buying, despite its continued losses. The increased number of use cases is a proof that BTC is becoming more institutionalized, he told CNBC. “Every major bank is trying to do something in the space,” Bogart said, noting that banks are either going to be offering bitcoin to their clients, they’re working on a custody platform, or are opening up a trading desk. Spencer Bogart advised investors to sell coins like cardano, tron, IOTA and NEO, but said they should hold cryptocurrencies like bitcoin cash (BCH), ethereum, ripple, and EOS.
According to Matt Hougan, Global Head of Research for Bitwise Asset Management, the most compelling use case for bitcoin today is as a store of value, although he admits the idea is often dismissed because of the volatility of the cryptocurrency. “Gold is solid. Bitcoin is volatile. It’ll never work – these statements are ignorant of gold’s history and devoid of imagination,” Hougan recently wrote in an op-ed piece for Forbes.
“Before 1971, the US dollar was hard-backed by gold, and gold’s value was effectively vouchsafed by the full faith and credit of our government. When Richard Nixon took the US off of the gold standard, it set gold loose from its moorings,” Matt Hougan explains. “What followed was a period of huge volatility, as gold fought to establish itself as an independent store of wealth. In 1974, for instance, gold bullion prices rose 73%, before falling 24% in 1975. In 1981, gold lost 33% of its value, after being up 121% just two years prior,” he details.
Crypto experts contacted by Russian media are not so optimistic, at least in the short run. The value of bitcoin core (BTC) will continue to drop, even below the psychological $6,000 USD threshold, they claim. At the time of writing, BTC is trading at around $7,450, while bitcoin cash (BCH) holds over $900.
The downward trend is largely due to decisions and statements made by regulators in a number of countries, points out Vladislav Antonov, analyst at Alpari. Several factors have caused the weakening of bitcoin, according to the expert. Recently, the US Department of Justice launched a criminal investigation into supposed price manipulations in the cryptocurrency markets. News came out that authorities in India may impose 18 percent tax on crypto trading.
Speaking to RIA Novosti, Antonov also mentioned the crackdown on fraudulent ICO projects and suspicious crypto activities, part of the coordinated “Operation Crypto-Sweep” in North America. Another event that has influenced the prices is the expiration of CME bitcoin futures on May 25th.
Igor Zartdinov, co-founder of the ICG crypto fund, says the decrease in the value of bitcoin occurs on a neutral-to-positive news background. He thinks that market manipulation is a possible explanation, as big players usually earn at the expense of small investors. “That’s what we are seeing now,” Zartdinov believes.
What are your predictions about the future of crypto markets? Share your expectations in the comments section below.
Images courtesy of Shutterstock.
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