Bitcoin (BTC) faces the second half of the year with the aim of achieving remarkable annual growth. Reaching the 300% registered in 2020 is practically utopian (the price of BTC should climb towards USD 120,000), but the maximum of USD 64K appears on the horizon as the great goal to reach for the New Year.
The next 6 months have several factors to analyze. First of all, the focus will be on precisely the two main reasons that caused the collapse of the market: environmental concerns and restrictions imposed by the Chinese government.
After Elon Musk announced that Tesla would stop accepting BTC as a means of payment due to the alleged environmental impact of crypto mining, the price of the cryptocurrency collapsed. However, if the “catastrophe” was of any use, it was to put environmental issues that revolve around the crypto market at the center of the scene, but also those of other industries, such as the banking system or the gold industry.
The decline in the price of BTC further boosted sustainable energy-based crypto projects aimed at lowering the industry’s carbon footprint, and also led to new initiatives. For example, MicroStrategy CEO Michael Saylor formed the Bitcoin Mining Council, an organization aimed at bringing more transparency to the industry.
Second, the rearming of the world crypto scene as a result of China’s repressions towards the local market will also be decisive in the coming months. Faced with the impossibility of continuing to operate in the country, crypto miners are still looking for new destinations to rearm, and the equipment supplier companies are after them. Kazakhstan and the United States, in principle, stand out as the country’s most interested in absorbing this flow of miners.
On the other hand – and despite the “market maturity” that many references cite when analyzing the current situation of the ecosystem – it is also important to highlight the considerable influence that the main market personalities have on the sentiments of investors . In this sense, the Crypto Council for Innovation (CCI) event on July 12 will be key, where the faces Jack Dorsey and Elon Musk will be seen. The CEOs of Square and Tesla will talk publicly about bitcoin.
Finally, something to watch closely in the second half of the year will be the behavior of the United States National Securities and Exchange Commission (SEC) in relation to exchange-traded bitcoin funds (ETFs). The US regulatory body has several approval requests on the table, and in recent weeks it has postponed all of them.
Applicant firms are awaiting approval from the SEC; an eventual approval would possibly skyrocket the price of BTC. As has happened in Canada and Brazil, to form an ETH, the finance companies in charge must make a significant initial investment in BTC to start their products.