CEO of GVA Research David Garrity believes the current Bitcoin rise is a temporary relief.
In a recent interview with Bloomberg, David Garrity suggested that the prices and trading levels of Bitcoin had come under immense pressure and hence a ‘relief rally’ was due at any moment. Garrity also attributed the recent surge in the price to some positive regulatory developments, echoing Octagon Strategy’s Ryan Rabaglia‘s CNBC interview where he opined that clearer regulations will take the prices of cryptocurrencies up and over.
According the GVA Principal, recent advancements by the US SEC, developing upon the status of the cryptocurrencies Ethereum and Bitcoin, have taken away quite a few negative dispositions among retail investors in the market.
Unlike Rabaglia, Garrity identified end-user adoption as the critical parameter that will drive any sustained BTC price rally. As long as there aren’t enough significant use-cases for Bitcoin in the market, especially in the payments sector, volumes will not rise notably.
In addition to slow adoption, the massive number of government investigations into market activities, without clear guidelines and regulations has been the major reason for drop in volumes and increase in price struggles all through 2018.