Spencer Bogart, a cryptocurrency analyst, believes that Bitcoin price is drawing close to a bullish trend, and will see $10,000 this year. The pioneer cryptocurrency has lost nearly two-thirds of its value since it hit an all-time high of almost $20,000 about a year ago. As of this writing, Bitcoin trades at $6587.57 according to CMC.
However, even as crypto market experiences a drop of up to $575 billion since it hit an all-time high, the analyst believes that a bullish market is imminent.
Bogart is a partner at Blockchain Capital, a cryptocurrency and blockchain venture firm. Speaking to CNBC’s “Fast Money,” the analyst confided in a bullish retracement for Bitcoin and the entire crypto market. Bogart opines that the recent developments in the crypto market could inform why “Bitcoin is close to bottoming.”
On October 5, 2018, CNBC’s Fast Money tweeted:
“After a flood of good news this week, #bitcoin is flat but @CremeDelaCrypto says it just marked a bottom.”
Events that herald the change
On Wednesday, the week started with a major announcement by TD Ameritrade, an established stock brokerage company that has invested in ErisX—a marketplace for digital assets that focuses on a centralized exchange structure.
Thursday the same week witnessed a similar announcement from a renowned financial advisor and billionaire Ric Edelman, who broke the news about his investment in Bitwise Asset Management. BAM is a reputable cryptocurrency index fund.
To crown it, on Friday David Swensen, popularly known as Yale’s “Warren Buffet,” invested in two separate crypto funds under the management of Andreessen and Paradigm.
These activities drove Bogart to the conclusion that Bitcoin could hit $10,000 as this year draws to a close.
“Towards the end of last year, when we were at the peak of this bulls market, bad news seemed to have no effect on the markets [….] Now we [see] the other side of that when we have a week of news with TD, Ric Edelman, and Yale, and it has almost no effect on price,” Bogart explained. The same sentiments were echoed in a tweet on October 5, 2018.
Bogart believes that while the crypto market may not immediately react to the said events, they come with inbound institutional capital that can set the foundation for the next bullish market. His opinion also echoes that of 54 percent of institutional stakeholders who think that Bitcoin has already bottomed out. This is according to Fundstrat Survey.
Big players change tact
Institutional investors that are often afraid of the crypto market’s instability have now changed tact, edging closer to the $220 billion cryptocurrency market as a risk-cushioning strategy. With that in mind, big buyers now pour millions of dollars into the market through over-the-counter trading, in a bid to displace individual investors. In an ideal trading atmosphere, this could mean mainstream cryptocurrencies such as Bitcoin could become more stable as a handful of players distribute larger capital.
“What that’s showing you is the professionalization that’s happening across the board in this space….The Wild Nest days of crypto are really turning the corner.” This is according to Bobby Cho, the head of trading at Cumberland, a company that deals with over-the-counter trading for digital assets.
Importantly, there are important lessons to learn: First, the market action demands a grip from big money. Besides, the institutional players do not want to venture into other platforms below their entry level. These trends could inform the decision taken by financial experts such as Bogart.