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Bitcoin Breakthorough

A trader has claimed that the price of Bitcoin could soon shoot up to $10,000. It previously reached this amount in November last year and quickly climbed to $20,000. However, after correcting and falling back to a much lower value, it still hasn’t recovered. The trader, Brian Kelly, says that this will likely soon change thanks to reports that ICE (Intercontinental Exchange) has been developing an online bitcoin trading platform. The platform will aim to resolve a custody issue that has previously affected bitcoin’s development.

Kelly told CNBC that he was excited by the news and believes that the new development could mean that Bitcoin experiences “big price moves”. Referring to a “physical delivery of Bitcoin”, he suggested that ICE could have a custody solution that will help cryptocurrencies become an emerging asset class.

Mr Kelly said: “That has been the big hurdle. How do you hold on to these assets? There are generally bearer instruments just like old bearer bonds, and so you have to have a third party custody person.”

The custody solution from ICE is for institutional holders, helping to make cryptocurrencies more accessible. It means that products such as pensions could be able to hold cryptocurrencies due to greater ease in meeting compliance regulations. Brian Kelly suggested that ICE could become a custodian or have a custodian solution that is qualified with the Securities and Exchange Commission. This would help the market to grow and could mean some large rises in price with “just a small amount of capital flowing”.

Speaking specifically about Bitcoin, Kelly posited that it could soon get to $10,000. It currently sits at $8,657.09 (May 11), $1,000 below the price a week ago. However, it has got very close to $10,000, hitting more than $9,900 on May 6th. Kelly points out that an uptrend can still be observed. He says that others haven’t realised the importance of the news about ICE and that $10,000 could possibly be a reality very soon.

However, reports the ICE is developing an online bitcoin trading platform for investors haven’t yet been confirmed by ICE. They have yet to issue any comments, which leaves people open to speculation.

While traders like Kelly are getting excited about where Bitcoin is heading next, some financial experts think that it can only head down. Warren Buffet, CEO of Berkshire Hathaway who has a net worth of over $84 billion, certainly doesn’t have any confidence in cryptocurrencies. Speaking at a shareholders meeting in Omaha, Nebraska, he said that cryptocurrencies “essentially will not deliver anything other than supposed scarcity”.

The founding CEO of PayPal, Bill Harris, has also said that Bitcoin has “no store value” and that retailers shouldn’t accept it as a means of payment. In fact, he went so far as to call Bitcoin a scam and a “colossal pump-and-dump scheme, the likes of which the world has never seen.”

It’s clear that some people have more confidence in Bitcoin than others, but for those who have faith in it, exciting things could soon be happening.

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