If Federal Authorities Start Accumulating Bitcoin It Greatly Impact Bitcoin Price And Start A Massive Bitcoin Bull Run

bitcoin regulation

The head of research at blockchain and research associate at the London School of Economic, Garrick Hileman, talked about the major resistance towards the adoption of Bitcoin and digital currencies. Garrick Hileman said:

When regulation tightens, we have seen the price of Bitcoin (BTC) respond positively more often than not. Regulators have not sought to ban BTC or other digital currencies; it legitimizes Bitcoin. When Bitcoin (BTC) emerged newly, there was a fear that the digital currency would be outlawed. But it has been around for over ten years now and counting.”

Hileman went ahead to reaffirm that the fundamental use of Bitcoin is as a store of value compatible with gold. He also added that if the central banks choose to accumulate Bitcoin, as a store of value, it could greatly impact Bitcoin price and start a massive Bitcoin bull run.

Central banks are in charge of setting interest rates and regulating inflation. They are also in charge of monitoring the Federal Reserve. They include a wide range of assets in reserve to minimize risk. Some of the assets include Bonds, Foreign Currencies, and Swaps. Hence, going by the rate at which Bitcoin improves, the Federal Authorities might consider accumulating Bitcoin (BTC) as well.

Tom Lee Bitcoin Price Prediction 2019

The digital currency market is yet to break out of the hands of the bears as we approach the end of Q1 of 2019. Almost all the coins in the market have been trading in a tight range since the beginning of this year. Even the world’s most dominant digital currency – Bitcoin (BTC) – has been stuck around the $4k level. Many have been waiting for the breakthrough Bitcoin bull run. With the recent price trend in the market, will Bitcoin recover?

The hope of investors and traders have been kept alive with Tom Lee bitcoin price prediction 2019 and Tim Draper Bitcoin price prediction 2019. Tom Lee and Tim Draper are some of the biggest Bitcoin (BTC) bulls we have in the industry. They have been behind the digital currency, releasing bullish Bitcoin price predictions 2019, and expecting a massive Bitcoin bull run.

Earlier last year, Lee predicted that the value of Bitcoin (BTC) would hit $25k level. Lee gave this prediction after the massive Bitcoin bull run in 2017. While his 2018 prediction did come to pass, Lee has not given up on the digital currency. Tom Lee Bitcoin price prediction 2019 is $10,000. However, he still believes Bitcoin will hit the $25k level after Bitcoin recovers.

Tim Draper also strongly believes in the Bitcoin industry. During an interview, the BTC bull said that digital currency is superior to traditional currencies. Will Bitcoin recover? Yes, says Draper. Tim Draper Bitcoin price prediction 2019 is also very bullish. He also said that the capitalization of the digital currency market will grow by 1000x than what we have now.

What Is the Price of Bitcoin Today?

Bitcoin (BTC) Price Today – BTC / USD

#NamePrice24H %
1
bitcoin
Bitcoin(BTC)
$7,979.81
-2.91%

Bitcoin live price is $4,058 after surging by one percent over the past twenty-four hours. The current market cap of the digital currency is $70.26 billion and its trade volume over the past day is $13.42 billion.

Bitcoin and Crypto Markets More Regulated Than Widely Thought

According to the news of Newsbtc; there is a common motif within the crypto markets that the advent of “do-no-harm” regulation would allow for an influx of institutional, corporate, and public funds that will help propel Bitcoin and other cryptocurrencies higher.

Despite this, a recent report conducted by Bitwise Asset Management explains that the nascent markets are actually significantly more regulated and surveilled than widely known, while also importantly noting that the actual trading volume on many major exchanges is significantly lower than reported.

Are the Crypto Markets Actually Regulated Presently?

The report, which was published and conducted by Bitwise – a crypto asset management firm – came about after the firm submitted a Bitcoin-based ETF application to the Securities and Exchange Commission (SEC) and offers an in-depth look at many of the major topics currently surrounding the new and quickly evolving crypto industry.

In a section of the report titled “The Bitcoin Market Is More Regulated and Surveilled Than Is Commonly Understood,” Bitwise explains that the crypto markets are in fact regulated – in a certain regard.

“We are not implying that bitcoin spot exchanges are ‘regulated markets’ or that they are on an equal legal status with national securities exchanges or futures exchanges, but rather that the…exchanges highlighted earlier interface with other forms of regulation,” the report stated.

One such form of regulation that Bitwise notes exchanges are currently interfacing with is the FinCEN requirement that crypto exchanges register as Money Services Business (MSB), a requirement that has been in place since 2013. As a MSB, exchanges are subjected to a plethora of strict regulatory requirements.

Furthermore, the exchange also notes that exchanges who offer their services to users in the state of New York are required to acquire a BitLicense, which mandates that exchanges comply with a significant number of regulatory requirements that ensure safety for customers.

Report Claims that 95% of Bitcoin Trading Volume is Artificially Created
Another key portion of the report offers an interesting set of data regarding the veracity of the trading volume on major crypto exchanges.

“We will demonstrate…that approximately 95% of this…volume is fake and/or non-economic in nature, and that the real market for bitcoin is significantly smaller, more orderly, and more regulated than commonly understood,” the report explains.

Bitwise then elucidated the results of a test they applied to the top 81 exchanges by trading volume – which entailed using trade size histograms, volume spike analysis, and spread patterns – to determine the veracity of the exchange’s trading volume.

Shockingly, the conclusion is that of the top 81 exchanges, only ten of them – including Binance, Coinbase, Kraken, Bittrex, Poloniex, Bitfinex, Bitstamp, bitFlyer, Gemini, and itBit – had predominantly genuine trading volume.

When considering this data and Bitwise’s conclusion that 95% of the total Bitcoin trading volume is artificially created, it shines a light on just how much room Bitcoin, and the crypto markets as a whole, have to grow.

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Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.

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