Shark Tank investor Kevin O’Leary is skeptical about Bitcoin (BTC)’s ability to rally above the $25,000 price level under current conditions.
O’Leary Say In an interview with Stansberry Research, Bitcoin’s price stagnated as a lack of cryptocurrency regulation hampered institutional investment in the space.
“We need policy, especially for those of us in financial services, because we think it unleashes the power of institutional investor interest in cryptocurrencies. So we need policy to make that happen.
I will predict that cryptocurrencies, especially Bitcoin, will be locked between $20,000 and $25,000 until we get the policy. It’s not going anywhere because there aren’t enough buyers. You need to use the trillions of dollars managed by sovereign wealth, and they won’t buy bitcoin until regulation is in place. “
At the time of writing, Bitcoin is trading at $20,210, down nearly 20% from this month’s high of $25,200.
According to O’Leary, cryptocurrencies cannot be considered a true asset class without a regulatory framework.
“Crypto isn’t really an asset class yet because it’s not regulated. So all the excitement around it, and one of the reasons I’m bullish… is that I believe in the next two to three years we’re going to get Regulation. Finally we can get institutional involvement.
People forget that 70% of the world’s wealth is related to pensions and sovereign wealth funds. So if they are not allowed to buy that asset class, there is no potential bid.
This is one of the reasons why we can’t get the cryptocurrency above $24,000. It’s really hard because there are no real big voters who can buy it, especially Bitcoin and Ethereum. “
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