deVere Chief Deduces Catalysts For Friday’s Bitcoin Rally
Much of the cryptosphere was shocked on Friday as Bitcoin (BTC) embarked on a sudden rally. The leading cryptocurrency quickly breached $3,700, as it found itself up by 8% on the back of an influx of buy-side pressure. This spike in the valuation of BTC quickly pushed the broader market higher, with the aggregate value of all cryptocurrencies moving from $110 billion to $122 billion within a day’s time.
Although this move was welcomed, especially as BTC was nearing key support levels, many traders were caught off guard by the rally. As from the looks of it, there were no explicit catalysts to push digital assets sky-high on Friday. Yet, some have sought to weigh in.
In a company blog post, Nigel Green, the chief executive of financial consultancy group deVere, did his best to bring reason to the aforementioned rally. Green first noted that while the move was strong, BTC is still stuck in the midst of a trading range, adding that traders “shouldn’t be popping champagne corks just yet.” The deVere head is likely referencing optimists’ cries that further moves to the upside are inbound.
Green went on to mention possible catalysts. First, he mentioned the Bitcoin ETF rumors, specifically touching on the supposedly ‘leaked’ interview of an SEC commissioner stating that eventually, such a product would make it through the endless regulatory hoops. Oddly though, the interview was revealed to the public days before the surge.
Second is the development of the Lightning Network, which Green believes will push Bitcoin to the mainstream, especially as a medium of e-commerce. the deVere CEO’s comments regarding Lightning were likely only cemented by Twitter CEO Jack Dorsey’s sudden experimentation and lauding of the scaling solution, which hit finance headlines the world over.
Lastly, Green touched on the impending Bitcoin block reward reduction — the so-called “halvening” or “halving” — that is slated to activate in May of 2020. Like analysts such as Moon Overlord, Alistair Milne, 200M, among other crypto bulls, the investor explained that historically, BTC surged off the back of halving events, so the same could occur in about a year’s time.
Crypto To Swell By 5,000% In 10 Years
Green’s recent comments regarding Friday’s ‘straight out of left field’ rally comes after he made a slightly zany prediction about crypto’s long-term prospects. As reported by Ethereum World News in late-October, Green took to his company blog to explain why he believes that cryptocurrencies will run in a parabolic manner over the next decade, along with his expectations for other trends.
The chief executive remarked that the hegemony that Bitcoin has established for itself will begin to wane, as the vise that the cryptocurrency has put around the broader industry will loosen. Yet, he made it clear that he remains bullish on Bitcoin, especially due to its ability to change the way that “the world handles money, makes transactions, does business, and manages assets… forever.”
And with that in mind, Green remarked that as projects make entrees, creating friendly competition to spark innovation, cryptocurrencies and related technologies may make a foray into the mainstream. He explained:
The pace of mass adoption will speed-up and the cryptocurrency market cap can reasonably be assumed to reach at least 5,000% above its current valuation over the next decade.
This is, of course, quite the jaw-dropping prediction. But will it come true? I guess we’ll have to wait and see.
Title Image Courtesy of Christopher Burns