Bitcoin and cryptocurrency prices have swung wildly in recent months as the crypto market rebounded from a sharp sell-off (despite a serious JPMorgan bitcoin price warning).
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The bitcoin price has dropped from almost $50,000 per bitcoin at the beginning of 2022, falling to lows of just over $30,000 last month before regaining ground. Ethereum, its rivals BNB, solana, and cardano as well as Ripple’s XRP have also seen extreme volatility as traders panic—though some remain convinced the crypto market will recover.
Now, amid a fresh bitcoin and crypto price crash sparked by the escalating situation in Ukraine, outspoken bitcoin and crypto bull Tom Lee has said he expects a portion of almost $100 trillion worth of wealth to eventually flow into crypto markets—citing the fast-changing regulatory landscape as a potential catalyst.
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“If I had to say what’s the simplest way for a big step function to happen in crypto, it’s really getting existing generations of investors in the U.S., not new investors, to actually be willing to allocate to bitcoin,” Lee, head of research and managing partner at crypto-focused independent research boutique Fundstrat Global Advisors, told CNBC.
“And 76% of all the wealth in America is controlled by people over age 65. So that’s nearly $100 trillion held by people that think bitcoin is still kind of a hobby or things that people who live in the basement play with.”
Lee pointed to evolving regulations as helping to ease the flow of money into bitcoin and top ten cryptocurrencies by value ethereum, BNB, solana, and cardano and Ripple’s XRP.
This week, it was reported the Biden administration could issue a long-awaited executive order as soon as next week that would direct governmental agencies to study bitcoin and other major cryptocurrencies with a view to come up with a government-wide strategy to regulate digital assets.
“I think regulation could actually unlock a lot of that movement,” Lee said. “Just imagine 2% out of $100 trillion allocated to crypto. You could see a five to 10, 15 times increase in total network value.”
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The bitcoin price is now down over 20% from this time last year, with other major cryptocurrencies, … [+]
For now, the bitcoin and crypto market continues to trade in line with the stock market, with traders and investors fearing war between Ukraine and Russia.
“After increased tension between Russia and Ukraine yesterday, global markets tumbled, with bitcoin dropping by almost 10%,” Marcus Sotiriou, an analyst at the U.K.-based digital asset broker GlobalBlock, wrote in an emailed note. “All eyes are on the Russia-Ukraine situation for any short-term relief in the market.”
Coincidentally, Ukraine has also become the latest country to recognize bitcoin and cryptocurrencies in law, following similar moves in Russia and India.
“Ukraine’s balanced approach to regulating crypto shows that the adoption of digital assets on a national level doesn’t have to be a zero-sum game,” Anto Paroian, chief operating officer at digital assets investment fund ARK36, said via email.
“This law, which defines the clear rights and duties of all market participants, will mean that crypto will become adopted significantly more in peoples’ day to day lives, in a country that is already a big adopter of crypto technology,” added Sotiriou.
Source: https://www.forbes.com/sites/billybambrough/2022/02/18/crypto-crash-bitcoin-now-braced-for-a-100-trillion-bombshell-that-could-boost-the-price-of-ethereum-bnb-solana-cardano-and-xrp/