The bitcoin price is stuck under $20,000 per bitcoin, down more than 70% from its all-time highs, while ethereum and other top ten cryptocurrencies BNB
Now, a top U.S. regulator has said the bitcoin and crypto market could be headed for a price boom if a comprehensive regulatory framework is put in place—potentially paving the way for institutional investors and doubling the bitcoin market capitalization to around $700 billion.
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“Growth might occur if we have a well-regulated space,” Commodity Futures Trading Commission (CFTC) chairman Rostin Behnam said this week during a New York University School of Law event, it was reported by Coindesk. “Bitcoin might double in price if there’s a CFTC-regulated market.”
The CFTC and the U.S. Securities and Exchange Commission (SEC) are currently battling for control of the crypto space, with lawmakers in the U.S. and elsewhere getting closer this year to putting together a clearer regulatory framework. Last month, the Biden administration sent the bitcoin and crypto market a stark warning—potentially putting the $1 trillion market on a collision course with regulators after the White House Office of Science and Technology suggested bitcoin could be banned.
In recent months, some of the world’s largest financial institutions have begun rolling out cryptocurrency services to clients while a recent survey of professional investors who collectively manage $2.2 trillion in assets returned a huge crypto price prediction.
“These incumbent institutions in the crypto space see a massive opportunity for institutional inflows that will only occur if there’s a regulatory structure around these markets,” Behnam said.
Meanwhile, many crypto industry executives are long called for more precise regulation, predicting it will open up the market to new entrants.
“Having regulatory clarity will actually ease adoption,” the chief executive of the world’s largest exchange Binance, Changpeng Zhao, told Yahoo Finance in an interview. “I think for the mainstream users, 95% of users that are not in crypto yet, having regulation will ease them into crypto.”
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Stock prices and currency markets have been plunged into turmoil this week as central banks around the world struggle to maintain stability in the face of huge Federal Reserve interest rate hikes that have pushed the U.S. dollar to record highs against other currencies.
“Bitcoin is starting to attract attention as being relatively steady than usual, while a couple of central banks have intervened in some form or are preparing to do so in order to defend their own currencies,” Yuya Haswgawa, crypto market analyst at Bitbank, said in an emailed note.
“It is, in a way, impressive as the stock markets around the world are suffering losses this week, while bitcoin continues to fluctuate sideways. However, the price has not been able to pick a direction for the past two weeks and is struggling to climb back above $20,000.”
Bitcoin’s relative stability this week has been cheered by those in the crypto space who see it as a sign of bitcoin’s inflation hedge potential.
“Trading closely around $20,000 in recent months, bitcoin has remained resilient amidst rising inflation, market turbulence, and so-called crypto winter creating all-around adverse conditions for the leading cryptocurrency,” Alex Adelman, chief executive at bitcoin rewards app Lolli, said in emailed comments. “This period of time is illustrating bitcoin’s strength as a store of value during inflationary times.”