- Roula Khalaf, in a recent opinion piece, examined Bitcoin’s resilience and future expectations in light of regulatory changes and the potential introduction of Bitcoin ETFs.
- Khalaf challenges these assumptions. Even if the SEC approves Bitcoin ETFs, it might not eliminate the risks such as fraud and volatility associated with the cryptocurrency.
- Khalaf also notes the decline in the global crypto market value, stating that it has dropped from around $3 trillion to approximately $1.3 trillion.
Notable journalist Roula Khalaf compared recent news in the Bitcoin market with historical comparisons and shared her views on the price surge.
Will Bitcoin’s Price Continue its Recent Rally?
Today, Lebanese journalist and Financial Times Editor Roula Khalaf penned an opinion piece examining Bitcoin’s resilience and future expectations in light of regulatory changes and the potential introduction of Bitcoin ETFs. Khalaf starts by noting that despite the collapse of the crypto exchange FTX and legal issues faced by its former CEO Sam Bankman-Fried (aka “SBF”), Bitcoin prices remained unscathed. In fact, she states that the cryptocurrency has doubled its value over the past year.
According to Khalaf, this price stability can be attributed to two key factors. First, she mentions the expected halving of rewards for Bitcoin miners in early 2024, which is anticipated to reduce supply and potentially lead to higher prices. Second, she notes the expectation that the United States, which is anticipated to introduce regulatory measures that could legalize digital assets, might further stabilize the market. Particularly, the approval of exchange-traded funds (ETFs) that allow financial giants like BlackRock to invest directly in Bitcoin is expected from the U.S. Securities and Exchange Commission (SEC).
However, Khalaf challenges these assumptions. Even if the SEC approves Bitcoin ETFs, it might not eliminate the risks such as fraud and volatility associated with the cryptocurrency. She gives the example of ProShares, which launched the first Bitcoin ETF towards the end of 2021. The ETF initially boosted Bitcoin prices and closed its first trading day at nearly $42, only to be trading at around $17.50 currently.
Khalaf Highlights Tesla’s Bitcoin Investment
Khalaf also highlights the decline in the global crypto market value, noting that it has dropped from around $3 trillion to approximately $1.3 trillion. She mentions Elon Musk, a staunch supporter of digital assets, avoiding exposing Tesla to Bitcoin price volatility, and notes that Tesla’s initial $1.5 billion investment in Bitcoin in early 2021 has decreased by only about $184 million in digital assets.
Finally, Khalaf draws attention to the liquidity issue, noting that remaining crypto platforms face regulatory pressures. She points out that the trading volume of Coinbase, the largest digital asset platform in the U.S., has decreased by 55% in the first half of the year. According to Khalaf, without new capital inflows, Bitcoin’s current price rally might not be sustainable.
