Bitcoin [BTC]’s price increase was a ‘relief rally’, says expert

June 2018 was a brutal bear market for cryptocurrencies, where the price of Bitcoin [BTC] took a heavy hit. The month also saw a 7-month low for BTC, reaching as low as $5815 on June 29th.

The coin took the biggest hits on June 10th and June 22nd. The first drop chipped away 11.3% of the value, due to a drop from $7623 to $6754. The second bear run saw a drop of 8.5% from $6666 to $6096, with a drop to $5880 following soon after.

1-month price graph for BTC | Source: CoinMarketCap

1-month price graph for BTC | Source: CoinMarketCap

However, a small rally came as a breath of fresh air. On June 30th, the price of the coin grew by 9%, from a price of $5926 to $6465. David Garrity, the CEO of GVA Research, believes this to be a relief rally.

He stated that levels have been under pressure for both Bitcoin and other cryptocurrencies in the second quarter of this year. Furthermore, he also recapped a few of the positive changes that have occurred over the past few months.

Garrity quoted positive regulatory developments made by the Securities and Exchanges Commission, such as the declaration of Ethereum as not being a security.

On adoption, he stated:

There are some important issues to be resolved from a use standpoint…[we] haven’t necessarily seen wide adoption of BTC from a payment standpoint.”

David also spoke about regulatory concerns from the SEC and other authorities quoting the 130 investigations currently being conducted by the Federal Bureau of Investigation in the Initial Coin Offering market.

He went on to say that this concern and overhang with respect to regulatory authorities was “going to keep a lid on the substantial recovery”, which he predicted to be over the $10000 level.

Garrity also emphasized the fact that cryptocurrencies are an emerging asset class while being highly volatile. Looking at the fundamentals, he stated that the near term may continue to restrain, with growth coming as “we see the adoption of Bitcoin.” The CEO also sees promise in the institutional adoption of blockchain in the medium to long-term.

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