Bitcoin Could See Demand Ahead Of Consensus Conference Next Week
It appears that positive catalysts are pouring in for the cryptocurrency market. The latest is that bitcoin price could rally ahead of the consensus conference that is scheduled for next week. The digital currency is already enjoying the biggest price resulting in heading the overall market value too. Though there are other virtual currencies or coins, the interest for the bitcoin has not waned a bit and instead keeps increasing braving criticisms from some sections of the society. Significantly, the news comes on the heels of South Korea getting ready to reverse its opinion on initial coin offerings (ICOs).
Rally to Be Bigger Than Past
It is quite natural to expect bitcoin or any other cryptocurrency to rally ahead of any special conference. Therefore, it would not be a surprising thing to understand that the digital coin could see big rally ahead of a major summit. This has driven Fundstrat Global Advisors’ researchers headed by Tom Lee to believe that bitcoin is relatively cheap, Bloomberg reported. One of the reasons could be that considering that the virtual coin came close to hit $20,000 in December last year, the current price is relatively cheap only.
Another point is that though bitcoin price traded even below the psychological level of $6,000 per coin in early February, it has managed to come back strongly in May. Also, in December, the regulators were not as vigil as today. Therefore, despite tightening of regulations, the digital coin has managed to record about 50 percent gain since hitting below $6,000 levels in February. This apart, the virtual currency is getting wider acceptance now compared to what it was in December.
The researcher believes that the consensus rally could be bigger than the one seen in the past years. The researcher referred the Manhattan conference for its fourth year, and the even could easily draw over 7,000 people. In the previous year period, it was just about 2,750 to have participated. Lee pointed out that when the attendance doubled, the price of bitcoin jumped 69 percent last year and 138 percent in the following two month period.
Significantly, South Korea has indicated that it is ready to relax its regulations to boost cryptocurrency in the country. The country has banned initial coin offerings (ICOs) earlier and is now getting ready to reverse the decision through with riders attached to it. Similarly, Singapore has taken a step forward in launching a bitcoin smart banknote to encourage the use of the digital currency.
Regulations Could Dampen Interest
Lee indicated that the discussions about regulations for either bitcoin or any other digital currencies could only dampen the enthusiasm shown by users. However, he does not see a situation leading to that end. His bottom line is very simple. “We expect BTC and cryptocurrencies to behave similarly to prior years and rally during Consensus.”
On Tuesday, in Asia, bitcoin price fell 0.12 percent to $9,372.82 though it gained 3.88 percent for the seven-day period. The current price indicated that it had dropped nearly 52 percent from the high of $19,511 seen on December 18.