Cryptocurrency insider Kristen Smith reveals a potential catalyst that could spark the next Bitcoin (BTC) Bull ran.
in a new way an interview Speaking at CNBC’s Squawk Box, Smith, CEO of crypto lobby group Blockchain, said the current price of bitcoin is stable by long-term investors with the addition that retail traders have largely fled the digital asset markets due to bearish conditions.
However, Smith says retail investors will likely return once the economy picks up steam.
“I think Bitcoin has been pretty stable for a lot of reasons. First, you have a retail investor who has pretty much gone out of investing in Bitcoin… People are worried about paying for gas. They are worried about paying for groceries. They don’t have the ability to put extra money away. By investing in Bitcoin right now.
But I think the investors out there now are waiting for a future date. They are in it for the long term. And I think as we start to see the economy shift and people put more risk in their portfolios, we’ll see investing in Bitcoin go up and so the price.”
Smith is also considering the possibility that crypto regulations could be adopted by the US Congress by the end of the year, which some believe will attract more institutional investment in Bitcoin.
“Congress is actively working on legislation that would provide additional regulation of the underlying digital commodity spot market, so including the Bitcoin spot market, this actually has a real chance of getting it done before the end of the year.
The chair and member of the Senate Agriculture Committee introduced the Digital Goods Consumer Protection Act, DCCPA, which is a very good framework for regulating centralized exchanges in the spot markets. There is one outstanding issue around decentralized finance. These are software protocols that work quite differently from custodial central exchanges. But this is a problem that is being solved. I’m optimistic we’ll find a good solution there. I think there’s a good chance we’ll see legislation signed into law before the end of the year.”
At the time of writing, Bitcoin is trading at $19,167.
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