Bloomberg: Bitcoin Price May Hit $400K Due to Fundamentals, Not FOMO

Bitcoin’s improving fundamentals and the arrival of institutional investors could impact the volatility and price action of future rallies and corrections.

The Nature of Bitcoin Rallies will Change

Aaron Brown, the author of a recently published op-ed in Bloomberg, believes that the next sustained Bitcoin rally could be more measured as it will be propelled by fundamentals and global financial events rather than FOMO.

According to Brown, the boom and bust nature of the cryptocurrency market is not likely to change immediately and if future price action mirrors previous bull markets then Bitcoin could rise to $60,000 to $400,000 before declining sharply.

Brown argues that the last two rallies in 2013 and 2017 were primarily driven by retail investors and that 2019 is different as the current $260 billion cryptocurrency market cap is much larger than it was in 2013 ($1 billion) and 2015 ($3 billion).

Furthermore, today there are significantly more cryptocurrency investors and in 2018 more than $30 billion of institutional and investment capital went toward building new platforms.

There is also more clarity on the regulatory front and with major institutions like Facebook, Goldman Sachs, JPMorgan Chase, and Fidelity investing in the sector,