Reasons Why Bitcoin Won’t Go Above $25,000 appeared originally on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide.
The total value of all cryptocurrencies on the market is at $952.45 billion, a drop that means it has now fallen below the $1 trillion level for the first time. The price of Bitcoin, the original cryptocurrency, has dropped below $20,000, dragging down the value of all other cryptocurrencies.
This has resulted in an abundance of commentary from market gurus, like Kevin O’Leary of Shark Tank fame, who is skeptical that Bitcoin (BTC) will reach the $25,000 range.
O’Leary Bitcoin argued in an interview with Stansberry Research that the lack of regulation of cryptocurrencies is holding back Bitcoin’s development. The institutional investors, he claims, have been discouraged from entering the cryptocurrency market as a result.
The investor argues that financial policy is necessary because it will attract institutional investors. Kevin claims that until some sort of legislation is implemented, the Bitcoin price will not rise above $25,000.
Kevin believes that the failure to properly handle the trillions of dollars that have been flowing into the market is the primary cause of the decline in purchasers, and that this trend will continue unless and until regulation is implemented.
At the time of writing, the price of a single Bitcoin was $20,194, reflecting a tiny increase of 1.14% over the previous 24 hours.
Bitcoin’s Value Will Soar Once It’s Regulated
In addition, O’Leary thinks that bitcoin is not a real asset class unless there is a regulatory framework. But he also says he’s bullish on the cryptocurrency market since he expects regulation to boost institutional interest in the sector within the next three years.
After mentioning that retirees and sovereign wealth funds account for 70% of the world’s wealth, Kevin explains that he believes no asset will be purchased until there is effective regulation. Because there is no legislation in place for cryptocurrencies like Bitcoin and Ethereum, he claims this is one of the reasons why their prices have remained below $25,000.