• Bitcoin breaks USD 7,400 in reversal
  • Delphi Digital co-founder says human capital is flowing into Bitcoin
  • US SEC considers amending “accredited investor” definition to possibly include “knowledgeable” persons

Bitcoin markets have swung around remarkably, after threatening to test further lows over the last two days. Price is right now steadily climbing and has been back up above USD 7,000 for the past 12 hours, even recording a high of USD 7,426 at the start of Japan trading time on Thursday (CoinDesk).

Just as the recent bear run was unpredictable and seemingly without much explanation, this current rally does not appear to have clear motivating factors. Amid news of US President Trump’s ongoing impeachment, buy orders began flooding the markets, with candlesticks taking on bigger steps, and poking resistance levels within hours. Volumes have since died down but it remains to be seen if Europe will continue the momentum upwards.

One of the pieces of news to catch the eye today is Anil Lulla‘s interview at CoinDesk, where he insists that there is a lot of positivism in store for Bitcoin, not just because of the money, but because of the people. The Delphi Digital co-founder said that opinions about crypto have truly changed, and people are starting to take it more seriously, even in the current sentiment. He explains:

“When I left my job, my managing director literally didn’t understand why I was leaving for fake internet money… While I personally buy into the crypto ethos, we’re not selling anarchist thoughts, just offering perspective on why should you pay attention: because crypto is a great investment opportunity.”

And so far, he has been proven correct. Although 2018 also saw a low of USD 3,100, today, price has increased well above 100% and looks to be macro bullish heading towards next year’s May 2020 halving event. According to Lulla, too, Bitcoin has proven to be stronger and that beyond price, more people are recognizing its underlying fundamentals. He says that the thesis of Bitcoin’s market supremacy has played out in real time, as the world’s biggest digital asset continued to be the focus and altcoins withered under that shadow. He says the amount of interest, both in headlines and actual investment, flowing back into Bitcoin proves its reflexivity:

“It’s also interesting to consider over the past 12 months where every incremental dollar was added in the market. While some was new money, most was sitting on the sidelines from people who had sold their positions and were waiting to come back in.”

More importantly, he believes that it is the amount of human capital that is flowing into Bitcoin that will make the difference, not just financial capital:

“It’s amazing to see what people are creating. The easiest way to talk about crypto is that it’s dis-intermediating middlemen while organizing or incentivizing groups to work together.”

.As if to prove his assessment, the US Securities and Exchange Commission (SEC) today has also announced that it is examining more avenues to expand the classification of “accredited investor”. If true, this could have significant implications for capital formation of firms who have been up to now reluctant to meet full public reporting requirements.

The regulator is currently seeking public commentary on proposed amendments to the accredited investor category, which currently defines one as an individual with a net worth of over USD 1 million or an entity controlling over USD 5 million in assets. Being an executive at the company making the offering could also qualify a person.

If amended, new investors would be able to access the classification to new investors, based perhaps on professional qualifications and certifications that are evidence of them being knowledgeable enough. In the same way, “knowledgable employees” could also be allowed the same access to offerings.

SEC Chairman Jay Clayton said:

“The current test for individual accredited investor status takes a binary approach to who does and does not qualify based only a person’s income or net worth. Modernization of this approach is long overdue. The proposal would add additional means for individuals to qualify to participate in our private capital markets based on established, clear measures of financial sophistication.”

 

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