Bitcoin has had a wretched time of it during the first quarter of 2018. At some point in December, Bitcoin was at the apogee of an incredible bull run that saw it almost charge past the $20,000 mark. Fast forward to the early days of February 2018 when it fell below the $6,000 mark as the entire crypto market took a beating. In the midst of all of these was a massive market correction that saw the market cap of the entire crypto market decline by 50 percent. At the end of the Q1 2018, Bitcoin was having its worst Q1 in history. Despite all of this, one crypto finance expert believes Q2 will see a reversal of the trend.
Waning Influence of Regulatory Threats and Increased Bitcoin Adoption in Q2
According to Brian Kelly, the founder of Brian Kelly Capital, Bitcoin always comes good in Q2 based on its historical performance. He made the assertion during an interview with CNBC on Tuesday, April 3, 2018. Kelly predicted that Bitcoin will experience a significant bull rally beginning from the second quarter of the year. He noted that there were a number of significant events that could contribute to what he called “seasonal tailwinds” that have the potential to drive up the value of Bitcoin. These events include a number of notable Bitcoin conferences and an impending annual development cycle for the Bitcoin blockchain network. Kelly believes these events will introduce some needed positive sentiment within and outside the core Bitcoin community thus sparking a price increase.
Kelly also touched on the subject of crypto regulations and how they have contributed to the decline in the Bitcoin price. He noted that in the early months of the year, there was a lot of regulatory heat being put on the market from countries like South Korea, China, and the US. He stated during the interview that these regulatory measures that were stifling the market are beginning to wane. As a result, the market will soon begin to breathe freely, far removed from stifling regulatory conditions. He even maintained that even if another major country was to ban Bitcoin, it wouldn’t adversely affect the market, citing the level of maturity that the market had gained on the back of the major correction that occurred earlier in the year.
What Other Experts Say
Dan Morehead, the CEO of Pantera Capital and a noted Bitcoin early adopter has remained bullish in his assertion that Bitcoin will come out of its present rut and begin to climb in the market. In late 2017, when Bitcoin was in the midst of its spectacular run, Morehead predicted that Bitcoin could decline by up to 50 percent before recovering. As it turned out, Dan was spot on and now it remains to be seen whether Bitcoin will be able to recover. Wall Street analyst, Tom Lee of Fundstrat has consistently maintained that Bitcoin will hit $20,000 by the middle of the year and end the year somewhere in the $25,000 region.
Don’t forget to also check out our Bitcoin vs Bitcoin Cash guide.