Analyst Believes Bakkt Could Lead to Early 2019 Bull Run
As the cryptocurrency markets continue to range sideways and as market sentiment dwindles, investors should remember the events on the horizon that could lead to an imminent bull run. One analyst laid out how he sees the markets unfolding over the next couple of years.
In recent months, investors have witnessed an unprecedented period of sideways trading for Bitcoin and the general cryptocurrency markets, with Bitcoin caught in a trading range between $6,200 and $6,800. This range, however, has not broken for better or worse thus far, and investors are struggling to predict what will happen next for the markets.
Bakkt and Bitcoin ETF Could Fuel Early 2019 Bull Run
This past week, one popular cryptocurrency analyst on Twitter, Alex Krüger, explained how he sees the markets unfolding over the next couple of years. He predicts that the release of Bakkt and the SEC’s decision on the pending Bitcoin ETF will play a significant role in the future price cycles.
Krüger begins his explanation starting with an early 2019 BTC bull run that will be fueled by Bakkt and renewed anticipation for the approval of the VanEck/SolidX Bitcoin ETF.
“#1 Bull run on BAAKT & renewed ETF approval narrative early 2019,” he explained.
The ICE-backed exchange will enable trading of its new Bakkt Bitcoin (USD) Daily Futures Contract on December 12th, 2018, so the timing of this launch fits Krüger’s narrative quite well.
It is highly speculative that this new futures product will immediately impact trading for the better, but it could lead to some renewed market sentiment and it could increase the potential of institutional and corporate investments that may bolster the cryptocurrency markets.
In addition to the release of Bakkt’s futures products, he also notes that increased anticipation for the approval of a Bitcoin ETF could impact the markets. Currently, the SEC is still reviewing the much anticipated VanEck/SolidX Bitcoin ETF application, and it is unclear what their decision will be.
In a recent interview with Fox Business, VanEck’s director of digital asset strategies, Gabor Gurbacs, spoke about his confidence in the SEC approving the application, saying:
“We are the closest that we can be. It is very clear to me that America wants a Bitcoin ETF and we are here to build it.”
As the second influencing factor in early 2019, Krüger cites the denial of this application as the impetus for a crash into the $4,000 region.
“#2 ETF denied Feb/27, massive crash, goodbye 6k, hello 4k, cleanse all weak hands,” he explains.
This is purely speculation, although it is important for investors to expect the worst when it comes to decisions from regulatory authorities like the SEC.
As a final point, Krüger explains that a “halvening” narrative, which is the term that describes the 50% drop in Bitcoin’s block rewards that is estimated to occur on May 27th, 2020, will lead to increased speculative investing that will prop up BTC’s price and lead to a bull run towards the end of 2019 and into 2020.
“#3 Halvening 2020 narrative and re-adjustments lead to sustained bull run for the rest of 2019 & 2020.”
Although Krüger’s narrative is speculative, it is based on real and imminent events that are sure to impact the entire cryptocurrency markets. Also, it is presumable that much of his narrative will depend on how the markets are performing at the time these events come to fruition.
Featured image from Shutterstock.
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