After the peak at over $17,000 that Bitcoin reached in December 2017, it has pulled the whole cryptocurrency market into a steep decline. At press time Bitcoin is trading slightly under the $4,000 mark.
However, a Forbes article suggests that Garrick Hileman, the head of Blockchain research group based at the London School of Economics, has mentioned in a recent crypto-related podcast that central banks might play a crucial part in the next Bitcoin rally.
Will banks save the crypto market?
Hileman goes on to say that if Bitcoin is called ‘digital gold’, then there must be someone who will want to buy it. And since apart from institutional investors it is global central banks that are eager for gold (digital or physical), then if they decide to stock up on Bitcoin, this may get the BTC price to skyrocket.
Central banks manage interest rates around the world, control money printing – e.g. the US Fed Reserve or the ECB. Should they decided to collect reserves of BTC or other crypto, a huge demand in the market may appear.
Recent regulation has been positive on crypto
Hileman points out that at the ATH of Bitcoin, the market was expecting banks and institutional investors to arrive and start buying in. Instead, when nothing of the sort happened, investors, afraid of further collapse, began to withdraw their funds.
So now the expert says banks also can save the situation and enable Bitcoin to reach even bigger highs.
As for the recent regulations that have been happening around the world, Hileman believes they have been good for Bitcoin and the whole market of crypto assets. Now, he says, there is no fear that Bitcoin and crypto will become illegal. Regulation is a fine alternative to that.