Bitcoin price has not been able to sustain above $25,000 since June. Recognized cryptocurrency billionaire Kevin O’Leary says that Bitcoin will be trading below this level for a while.
Cryptocurrency billionaire sets hard resistance for Bitcoin
Kevin O’Leary questions whether Bitcoin can rise above $25,000 given the current circumstances. According to O’Leary, institutional investment in cryptocurrencies is hampered by a lack of regulation. Therefore, Bitcoin price is not finding enough strength to recover. In a recent Stansberry Research interview, O’Leary expressed his thoughts:
We ask for policy, especially those of us in the financial services industry, as we believe it will unleash the enthusiasm of institutional investors in cryptocurrencies. That’s why we need policy to get there. Until we have a policy, I would predict that cryptocurrency, and Bitcoin in particular, will be stuck between $20,000 and $25,000. There are not enough customers, so it will not be successful. You need access to trillions of dollars of sovereign money managed, and they won’t be buying Bitcoin until legislation is passed.
Bitcoin price dropped as low as $19,945 overnight after the Fed’s hawkish comments. Intraday losses for the leading crypto approached 9%. Meanwhile, ETH-based altcoins, especially Ethereum, were falling sharply by over 15%. The crypto market reacted to the downside Jerome Powell’s statements were as follows:
Re-establishing price stability will take some time and requires vigorous use of our tools to better balance demand and supply. Lowering inflation likely requires a period of below-trend growth
Why is Bitcoin falling, according to Kevin O’Leary?
The crypto market succumbed to the Fed’s hawkish statements in the short term. The restrictive decisions from the governments of China, Europe and Russia since last year have always been devastating. O’Leary says that without a regulatory framework, cryptocurrencies cannot be considered as asset classes. The crypto billionaire noted in part of the interview:
Since it is not yet regulated, cryptocurrency is not yet a legitimate asset class. Because of all the hype around, and one of the reasons I’m tall, I think the edit will come in the next two to three years. Finally, institutional participation is possible. People often overlook the fact that pension and state wealth funds hold 70% of the world’s wealth. Therefore, if they are prohibited from purchasing the asset class, there will be no underlying offer.
As for why the price was capped at around $25,000, O’Leary hinted that he wasn’t getting enough excitement about it:
This is one of the reasons why we haven’t been able to push crypto prices above $24,000. Especially for Bitcoin and Ethereum, this is difficult as a large constituency is still not allowed to buy.
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