FASB Rules, Regulatory Clarity, and ETF Approvals Could Catapult Bitcoin to the Moon

Market expert Greg Dickerson recently spoke about the future of Bitcoin, discussing various factors that could influence its price and adoption. He stressed the importance of regulatory developments, ETF approvals, and institutional interest.  He also addressed the upcoming Bitcoin “halving,” an event that reduces the number of new Bitcoins created and is typically associated with price rallies

However, he noted that the current economic climate, characterized by tightening measures and record inflation, is quite different. He suggested that whether Bitcoin experiences a rally next year might depend on global liquidity.

In an interview with Thinking Crypto, Greg pointed out that the halving event is often accompanied by hype. Still, many of the people who were initially excited about it have left the market. He observed that new retail investors are not entering the market the same way. If they bring new liquidity into the market, ETF approvals could potentially drive prices higher. However, Dickerson cautioned that institutional investors and significant players could still manipulate Bitcoin’s price.

Reasons why the expert is still bullish

Despite these challenges,  he expressed long-term bullishness on Bitcoin for several reasons. Firstly, cryptocurrency has been recognized as a legitimate asset class, with evolving tax laws and increasing regulatory clarity. 

Changes in accounting rules, such as the FASB rules, make it easier for corporations and institutions to hold Bitcoin on their balance sheets. Additionally, approving ETFs would bring institutional and individual investors into the market, potentially reducing Bitcoin’s extreme price volatility.

He highlighted that Bitcoin is now considered an alternative asset class, alongside real estate, art, and other investments, making it more appealing to high-net-worth individuals and institutional investors. The expert suggested that allocations to Bitcoin in portfolios could increase substantially once mainstream ETFs are approved.