The cryptocurrency winter seems to be reaching an end after more than a year in a downtrend for Bitcoin (BTC) and other digital assets. The last few weeks have been very positive, specifically for altcoins operating in the market. According to Garrick Hileman, Bitcoin’s next bull run could be triggered by central banks storing digital gold.
Banks Could Help Bitcoin Recover Its Price
During a conversation at AltFi Podcast, Hileman, the head of research at Blockchain.com and research associate with the LSE, explained that banks stockpiling Bitcoin could end up in a price increase for Bitcoin.
Hileman explained that although Bitcoin lost part of its dominance, it remains important due to its wide adoption and liquidity in the virtual currency market. He mentioned that there is a correlation between regulation in the crypto market and Bitcoin price increase. As he mentioned regulation helped legitimize Bitcoin.
According to Hileman, Bitcoin has been created as a store of value rather than necessarily a means of exchange. This, Bitcoin could eventually become digital gold in the future and work as a store of value. In the future, central banks could eventually start to purchase and stockpile the most popular digital asset, allowing it to surge in price.
On the matter, he commented:
“The question is though, who will be buying digital gold? If central banks start to accumulate bitcoin, that could be hugely impactful on Bitcoin’s price.”
Pauline Adam Kalfon, blockchain and financial services partner with PwC France, explained that central banks could move away from Bitcoin and digital assets. However, private entities such as JP Morgan could start moving towards the crypto market.
At the moment, there are no central banks holding Bitcoin, at least they did not inform about it publicly. Additionally, central banks have different rules that would not allow them to purchase the volatile digital asset.
Currently, each Bitcoin can be purchased for $4,082 and it has a market capitalization of $71.9 billion.