The cryptocurrency market cap recently dipped below the $400 billion mark, as bitcoin itself fell to little over $6,000, before its price started bouncing back. At press time, the cryptocurrency market made a bullish pivot, as US regulators signaled they’ll take a cautious approach to cryptocurrency regulations during a high-profile Senate hearing.
At press time, according to data CCN’s price index, bitcoin is trading at $8,387 after rising 24.5 percent in the last 24-hour period. This may be only the beginning of the flagship cryptocurrency’s rise this year, as according to CNBC experts see bitcoin go on a bull run greater than last year and hit $50,000.
In fact, experts believe the cryptocurrency ecosystem may surpass the $1 trillion mark, as other cryptocurrencies may also see significant gains.Thomas Glucksmann, head of APAC business development at cryptocurrency exchange Gatecoin, noted that regulatory recognition, technological development, and the entrance of institutional capital will contribute to this year’s push.
“Increasing regulatory recognition of cryptocurrency exchanges, the entrance of institutional capital and major technology developments will contribute to the market’s rebound and push cryptocurrency prices to all new highs this year,”
To Glucksmann, there’s no reason not to see bitcoin push to $50,000 by December. The technology he referenced was bitcoin’s much-anticipated Lightning Network (LN), which recently surpassed a major milestone as by reaching 1,000 mainnet payment channels.
Another possible catalyst for the recovery could be the release of a cryptocurrency backed instrument listed on a major exchange. While both CME and CBOE already launched bitcoin futures, Nasdaq recently revealed it is “continuing to investigate” these products.
As CNBC points out, there is still no bitcoin ETF on the market. An ETF, exchange-traded fund, would allow people to trade bitcoin without having to buy the cryptocurrency. Recently, bitcoin ETF applications were forced to withdraw at the request of the US Securities and Exchange Commission (SEC).