Bitcoin Price Prediction: G20 Summit May Deliver Positive Surprise for Cryptocurrencies
Daily Bitcoin (BTC) News Update
The world’s 20 most powerful finance moguls are meeting in Buenos Aires today to discuss the future of cryptocurrencies. Antsy investors have been losing their wits over the past two days, in fear that a major crackdown on cryptos is upon us. It’s not! The market is coming to its senses.
A letter from Mark Carney—governor of the Bank of England and chair of the Financial Stability Board (FSB)—which circulated among the G20 leaders on Sunday, has breathed some life back into the cryptocurrency market.
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time,” said Carney. (Source: “G20 watchdog focuses on rules review, holds fire on cryptocurrencies,” Reuters, March 18, 2018.)
Mark Carney’s quote on cryptocurrencies is plastered all over the Internet this morning. It has raised investors’ hopes that regulations are not in the cards. At least, for now.
Carney says that drafting new cryptocurrency regulations is not a top priority right now.
For the record, the FSB is the financial watchdog that governs regulations for the G20 economies. In other words, Carney holds the power to pull the trigger on crypto regulations.
There has been a growing uncertainty regarding cryptocurrency regulations since the G20 members are not all on the same page on the issue.
Germany and France indicated earlier this year that the inherent quality of anonymity in cryptocurencies poses financial risks because illicit activities like money laundering can flourish amid lack of regulations. But as South Korea has proven, positive regulations like “Know Your Customer” may help curb such activities.
The U.S., Canada, South Korea, and Japan are depicting more flexibility on the issue, seeking regulations, but on favorable grounds.
Cryptocurrency prices have sprung back to life after Carney’s reassuring remarks. But take note that he has not ruled out the possibility of future regulations.
Regardless, our long-held belief is that favorable cryptocurrency regulations help weed out the bad actors and bolster Bitcoin’s reputation as a legitimate alternative investment class.
Following the deep plunge that cryptocurrency prices endured on the weekend, prices bounced back on Sunday night in the wake of the positive news.
Chart courtesy of TradingView.com
At the time of this writing, BTC prices were up about 7.26% and one bitcoin was trading for near $8,286.20, after tumbling below $7,400.
Analyst Take
All eyes are glued to the G20 summit now, which is underway in Argentina as we speak. We’ll be closely watching the proceedings, since the outcome could have far-reaching implications on the crypto markets.
We reiterate, however, that cryptocurrency regulations may prove to be an unexpected windfall for Bitcoiners. So, we remain optimistic in our Bitcoin price prediction, maintaining our $15,000 price target for 2018.
