Even though all the signs currently point towards a dry spell for cryptocurrencies – if not imminent death – in the next few weeks, one industry insider is hopeful that the industry is bound to go on a bullish run again.
“…all hell will break loose.”
These are the words of Bill Barhydt, CEO of Abra, a cryptocurrency wallet app that has direct investment from American Express.
Speaking to Business Insider, Barhydt shared the view that even if industry analytical tools point towards a dying interest in Bitcoin and other cryptocurrencies, it does not really share the view of larger markets.
He mentioned that “institutional interest is now starting to grow”, no matter what statistics Google Trends say about it.
He backed that claim by mentioning his own experience within the industry, stating that during his discussions with people from high net worth institutions, he has obtained the knowledge that the interest in cryptocurrencies is only growing in that sector.
Altcoins could be the reason for another hike in value
As per Barhydt, whose wallet app is known for supporting both cryptocurrency and fiat, cryptocurrencies other than Bitcoin and Ethereum could be the next game changer.
He stated that these other cryptocurrencies, called “altcoins”, have shown exponential growth despite what happened to Bitcoin in the past few months, and thus they could bring about a very positive change for the industry in the near future.
Cryptocurrencies and their regulations are only getting clearer in the U.S.
Barhydt is also a proponent of optimism when it comes to the talks of regulations over cryptocurrencies.
This is in spite of how in the U.S., talks of regulating Bitcoin and other cryptocurrencies recently reached the point where senate and congressional committee hearings were held in regard to obtaining more information about these digital assets, which ended in the U.S. Securities and Exchange Commission asking for cryptocurrencies and related initial coin offerings (ICOs) to be termed as securities.
However, Barhydt remains confident that this is only bringing more clarity to the overall regulatory status of cryptocurrencies and points towards encouraging people to put a small sum of their investments into cryptocurrencies.
The main market for cryptocurrencies is not in the west
Barhydt also mentioned that western countries themselves are in fact not the most influential market when it comes to cryptocurrencies.
“There really is zero large-scale institutional money from the west in crypto right now.” He mentioned while elaborating on that point.
He then clarified that most of the large-scale investments come from offshore markets, which are the main hub of cryptocurrencies.
“That is happening in Japan. Once a large sizable chunk of Western institutional money starts to come in — watch out.” He concluded the thought.
While this all remains on speculation and personal analysis, for now, one can hope that Barhydt given his extensive experience of being an entrepreneur is right about this, since, at press time, the value of both Bitcoin and Ethereum is being recorded at $7,980 and $448, respectively.
These figures represent a more than 50 percent drop from both cryptocurrencies’ highest values during December 2017 to January 2018.