Bitcoin News Now: Last week, bitcoin (BTC) surged about 15% in less than an hour kick-starting a new bullish trend in the cryptocurrency market now referred to as the bitcoin Bull Run. This renewed development in the markets seems to have changed the attention of digital asset investors and cryptocurrency money according to a prominent tech and blockchain influencer.
Michael Arrington, the Founder of technology news outlet, Tech Crunch, recently said that the Bitcoin Bull Run and the general upward trend in cryptocurrency has caused digital assets investors to channel their resources to the crypto market. Arrington spoke during an interview with Ran Neuner on CNBC’s Crypto Trader on Monday April 8.
Digital Asset Funds Are Focusing on Crypto Market
The TechCrunch boss who owns Arrington XRP Capital, a digital asset management firm in blockchain-based capital markets, noted that cryptocurrency fund managers were now making more bets on bitcoin and cryptocurrency than on blockchain projects themselves.
This trend, he explained was directly linked to the recent developments in the market, pointing out that about $40 billion was added to the market in in less than a week. “I just know that if we put money into the market, and hold long enough and make good bets, eventually, hopefully, we’ll make money,” Arrington said highlighting a new wave of optimism among digital asset investors.
The 2018 Bitcoin Crash Encouraged Core Blockchain Investments
The last bitcoin Bull Run which culminated in an all-time high price of bitcoin was driven largely by speculations and the Fear of missing out (FOMO) rather than strong market fundamentals. The result was that when the market crashed, it went spiraling down for more than a year.
This period often referred to as the crypto winter allowed digital asset investors and other cryptocurrency enthusiasts to have a rethink and focus on a more sustainable long-term perspective of the blockchain and cryptocurrency investment. Despite the cash crunch that came with the fallen prices, cryptocurrency-focused funds increased investments in promising blockchain and cryptocurrency startups. Whereas 2017 was known for ICOs, in 2018 established crypto funds invested heavily in blockchain projects. Projects were increasingly announcing successful funding rounds, deals, and partnerships.
Blockchain Deals Have Reduced Since the Start of Bitcoin Bull Run
Arrington observes, however, that with the new optimism in crypto markets, deals have dipped as cryptocurrency funds are looking to benefit from bitcoin price movements. He said that the few numbers of deals presented at the recently concluded Deconomy conference proved that cryptocurrency fund managers are using their resources to trade on the cryptocurrency market.
Though the number of deals is considerable down from 2018 numbers, Arrington is confident they are not gone for good.
He explained:
“I think the deals will pick up again, entrepreneurs will start to build companies, because they know they can raise money and we’ll start to see really good deal flow coming in.” adding that, “This is definitely the season of the mainnet.”
The SEC is Killing Cryptocurrency Companies
Finally, Arrington condemned the approach of the United States Securities and Exchange Commission (SEC) towards cryptocurrency innovation in the country. Referring to it as a “total disaster”, he explained that it was better investing in crypto companies based outside the U.S. because US crypto-investment are highly regulated by SEC. Arrington XRP Capital is currently interested in South Korean stablecoin company Terra and Israel-based SpaceMesh.
Bitcoin Price Prediction 2019
Bitcoin Price Today
At the time of writing, 1 btc to usd is $5,246. Following the bitcoin Bull Run, BTC has maintained its price above $5,200 mark but is yet to test $5,300 which analysts believe will trigger the next phase of the bitcoin Bull Run.
Riccardo Lopp is a writer specializing in Crypto, ethereum and whole blockchain ecosystem. His background is in economics and statistics.
