What will help Bitcoin rise?

After months of sluggish price action, Bitcoin's value dropped significantly in November. For newcomers to the market, this is undoubtedly a shocking event, however, in fact, this is just a continuation of the cyclical rise and fall in the price of the world's first cryptocurrency. The value of Bitcoin will rise again as usual. The only question is what will serve as a catalyst for an increase in the price of a digital asset?

In order for the trend in the cryptocurrency market to change to bullish, some kind of mass signal is required. Something that will re-convince everyone about Bitcoin's potential, something that will help it acquire new liquidity from wider sources, and something that will help it gain a foothold in the list of the best investments. 

Here are the three most likely candidates for this role

  Launching a security token ecosystem

Utility tokens are often considered as a stake in a project, and some of their owners assume that the project's profits will be returned to them as dividends. This misconception is compounded by trading on secondary markets, where prices are often inflated. 

One of the consequences of speculative trading of utility tokens is that they are not used to interact with the project, so the client usage/reward mechanism does not work properly. A number of utility tokens have been criticized for this flaw in the value mechanism. 

That is why security tokens can become an evolution of utility tokens. Interoperable security token models will allow institutional (potentially also retail) investors to operate with a decentralized model of automatic proof of ownership that provides the same rights as shares. At the same time, the cryptocurrency projects that will issue them will be able to do so without having to prove their “utility” by mindlessly adding new use cases for the blockchain.

Platforms such as tZERO, Securitize and Polymath have already begun to lay the groundwork for issuing the first wave of their own security tokens. And although the majority of the community and media attention is drawn to blockchain startups, the potential of issuing security tokens should not be underestimated, since any liquid asset can be digitized. Real estate, works of art, and intellectual property are just a few examples of such assets. Tokenized securities will provide assets with new channels for liquidity that were previously unavailable.

The potential for security tokens to spark a bull run is clear.. The model is fundamentally and legally strong, giving investors greater rights and providing greater transparency. 

BAKKT and the emergence of new institutional markets

Many were disappointed by the news about the postponement of the launch of the ICE futures platform until January 24, 2019, however, many experts expect that the launch BAKKTwill be a catalyst for the influx of new investment into the area.

The New York Stock Exchange is part of the ICE platform and will be able to support BAKKT contracts, which will provide the new investment instrument with greater recognition and liquidity. In addition to working with NYCE, BAKKT has also received support from corporations such as Microsoft and Starbucks. 

Futures contracts can be particularly attractive to banks and other institutions that want to invest in a volatile asset, as they provide some of the avoidance of potential price fluctuations. Bitcoin's reputation as a volatile asset makes it ideal for this type of investment.

In addition to its ability to attract investors, the futures market has other advantages over traditional crypto exchanges. The price of an asset is adjusted based on constantly incoming price information, which means it is much less random than on exchanges. Futures investors also do not risk being targeted by hackers. 

BAKKT contracts are very different from the existing institutional futures contracts provided by the CME and CBOE platforms. Unlike the CME and CBOE, where all bets on price movements are settled in US dollars, each time a BAKKT speculative agreement is created, new Bitcoin is purchased. Additionally, BAKKT contracts do not support margin trading or leverage - this decision was made to improve market integrity, price reporting, and BAKKT BTC pricing. 

Overall, BAKKT seems to be a reliable and affordable way to store Bitcoin. And since futures are purchased with Bitcoin, BAKKT will have a significant impact on the entire network.

SEC Approval of Bitcoin ETF

The potential price impact of ETF approval for Bitcoin is huge. However, up to this point, no ETF that has been submitted to the Commission for consideration has not been approved. An ETF could bring many benefits to Bitcoin - it would be more accessible on major international exchanges, and could also integrate with pension funds and other similar investment portfolio options.

As such, a Bitcoin ETF is seen by many as a “bridge to institutional funds”. Using this tool, an investor does not have to remember lengthy private keys, or move BTC back and forth between addresses, nor does he have to think about the cost of transactions when withdrawing or depositing funds.

Also, such funds do not provide a selling function, so buyers of Bitcoin ETFs are satisfied with only one price movement - up.

At the moment, applications from Direxion and Proshares are being considered, and the application from VanEck-SolidX has already been rejected. Unfortunately for any ETF, the SEC's main claim - market manipulation - is difficult to refute, so the moment of creation of such funds is difficult to refute. is still out of sight.

It remains unclear how the delay in the launch of BAKKT will affect the review process of the current application for the ETF, the verdict on which was supposed to be announced before December 29.

According to bravenewcoin.com