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Bitcoin [BTC] price crash is not due to SEC crackdown, says cryptocurrency Attorney Stephen Palley

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Bitcoin [BTC] price crash is not due to SEC crackdown, says cryptocurrency attorney Stephen Palley
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The cryptocurrency market is suffering a bloodbath since the start of November. Bitcoin [BTC] has fallen down by approximately 80% since its all-time high. Stephen Palley, a blockchain and virtual currency Attorney spoke on Bloomberg regarding the recent crash of the cryptocurrency market.

Stephen Palley said that ICOs were interesting while they lasted because people could start a business and get investment capital without having to worry about the securities that the IPOs were usually burdened with. According to him, ever since the crackdown by SEC, ICOs have drastically reduced. He added:

“I don’t think that the model [ICO] is completely gone now. But the US is not the only market in the world and securities laws are different elsewhere. So I don’t think that we’ve seen the end of this, but what its gonna look like in the United States. I’m not sure.”

He went on to speak about what the crackdown meant for Bitcoin and other cryptocurrencies and said that he is a believer in the blockchain technology and also believes in Bitcoin. Palley stated:

“Also I would not write off Bitcoin, and I would not write off Ethereum and these are very interesting technologies. And if we were looked to look at this in terms of investment, it’s, you know, some people have won a lot. Some people have lost a lot, but its technology itself remains interesting.”

Stephen Palley spoke about the decision by the Securities and Exchange Commission [SEC] on two cryptocurrency startups [Paragon and AirFox] that were hosting illegal ICOs. He said that SEC is not in the “business of sending messages” when it comes to enforcing companies that violate securities laws. He said:

“If you look at the Paragon or AirFox orders that came out on Friday what they [SEC] say is actually pretty common sense, which is just because it’s newfangled technology doesn’t mean that established security principles don’t apply.”

He further added that these bold statements made by SEC are not the reason for the drop of Bitcoin’s prices. Palley stated:

“I’m not sure that there is necessarily any connection between recent SEC activity and the price of cryptocurrency that may or may not be the case but it’s difficult for me to see a necessary cause or relationship.”





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Bitcoin

Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021

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Bitcoin [BTC] will likely reach $100,000 with a market cap of over $2 trillion before the end of 2021
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The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.

According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.

Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,

“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”

Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,

“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”

Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,

“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”





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