Bitcoin is regarded as the most popular cryptocurrency powered by blockchain technology today. Its value fluctuations raise a lot of attention on the world’s financial market. During the last seven days, the bitcoin price has stabilized at a mark of around $9,000, gaining almost %1.54.
Having experienced some price corrections, bitcoin finally stabilized around the $9,000 mark. That is almost a half from its recent lows, a good sign for traders. The main question is whether the virtual coin can gain and overcome the old highest marks. Some experts believe in it, giving the following argumentations.
First of all, the price of bitcoin is influenced by two main indexes which are higher adoption rates of bitcoin as a store of value and as a medium of exchange. That ensures the safety of the fintech infrastructure.
“Assuming Bitcoin will be used as store of value going forward (e.g. digital gold), a better security infrastructure overarching the entire crypto ecosystem will be needed for people to place trust in this new financial medium and start using it,” says Christian Ferri, President and CEO of BlockStar.
“Once this happens, more people will jump in, so a scalable infrastructure will be crucial.“
Secondly, the inflow of institutional money into crypto index funds will also have a positive impact on the value of the digital currency. Darren Marble of CrowdfundX notes that, at this stage, institutional investors are the main power that can cause the growth of bitcoin. He also explains that institutional investors don’t buy bitcoin on decentralized crypto exchanges because they are afraid of troubles with liquidity, security, counterparty risk, and custody of the crypto coin.
Marble claims that “only when regulated exchanges - such as tZERO, Coinlist, or even NASDAQ - go live with their secondary crypto trading platforms, will the smart money begin investing directly into Bitcoin.”
“Once this happens, the floodgates will open and we will see a new paradigm emerge; the crypto market cap will exceed $1 billion, and lead by new all-time highs of Bitcoin,” he says.
Finally, the third thing that can help boost bitcoin is the proliferation of crypto-related exchange-traded funds (ETFs). Chris Kline, co-founder and COO of BitcoinIRA.com, believes that prices will definitely bounce back, stating:
“Crypto-related exchange-traded funds may allow for simpler trading through brokerage accounts, which would also contribute to hiked up prices for Bitcoin and other cryptocurrencies.”