Bitcoin Is “Still in the Middle of a Pretty Significant Bull Run,” with Institutions and the Pandemic Acting as Backstops
“We have not seen any retreat on institutional interest,” said Mike Belshe, co-founder and CEO of BitGo.
On Monday, Bitcoin burst above the psychologically important $50,000 level but now, moving into the weekend, we are back under it and now trading in the $42k to $50k range.
Basically, after rebounding from $30k lows, Bitcoin price is back to the crab market.
Still, the leading cryptocurrency is trading 61.1% above July’s low, around $47,500, as of writing, and recording 60.63% gains YTD.
Amidst this price action, John Bollinger, inventor of Bollinger bands, suggested earlier this week to take some profits off the table or hedging.
Narrowing Bollinger bands also indicate the Bitcoin rally is flagging and facing resistance between $50k and $51k with $46,700 a key threshold to watch. Meanwhile, Katie Stockton at Fairlead Strategies cited DeMark market-timing indicators as flagging about two weeks of “sideways-to-lower” prices.
Additionally, “51,110 BTCUSD is the 61.8% retracement from the ATH to June's 28,800 low,” as such QCP Capital is expecting good resistance at this level, adding, “A consolidation triangle in the RSI also reflects the hesitancy in the market despite the positive price action.”
Time to pay attention: $BTCUSD Watch carefully, maybe take some profits or hedge a bit… Aggressive traders can think about putting out some shorts. Hodlers can look can look at add at lower levels if we see them. No confirmation yet, just be on the alert. #Bitcoin
— John Bollinger (@bbands) August 24, 2021
According to Mike Belshe, co-founder and CEO of BitGo, “we're still in the middle of actually a pretty significant ongoing bull run.”
In an interview with Bloomberg, Belshe explained that back in March 2020, Bitcoin was trading less than $10k, it actually went as low as $3,800, so, “It's been an 18-month bull cycle for us. It doesn't always seem like it. The volatility of bitcoin is much higher than what we're used to seeing,” he said adding, as the industry gets bigger, the volatility goes down, making it a lot easier for people to digest and everything gets a lot stronger.
Now we are making back above $50k with institutions as backstops. After 10 years of working on crypto’s institutional adoption, it's finally paying off, said Belshe. “We have not seen any retreat on institutional interest,” he added.
Additionally, we're on the backstop of the pandemic, which has forced people to take a look at questions of what US monetary policy means for the long term and how to deal with that depending on what their investment portfolio looks like.
“So all of those guys are coming to play, and they're all figuring it out right now. And that's exactly what the whole industry is building,” said Belshe.
Going forward, it’s the ETF that will be the “next big milestone” which is really going to enable things; he said, adding, whenever that happens, early next year or a little bit later, “that's going to provide finally a very easy way for people to enter and participate in the market. They'll know that it's regulated and get us their regular broker. They don't have to establish new policies and procedures for themselves around security and things like that.”
Bloomberg Analyst Eric Balchunas believes that the US Securities and Exchange Commission is likely to approve a Bitcoin futures ETF soon, and it could be launched as soon as October, as SEC Chair Gary Gensler signaled he’s more open to a Bitcoin futures-backed ETF as it offers greater protection.