China and bitcoin’s 2017 price: A Beijing intervention could halt its bull run — Quartz

One major event on the horizon next year is the possible approval of a bitcoin exchange-traded fund, or ETF. Two funds (one of them operated by the Winklevoss twins of “The Social Network” infamy) are currently being considered by the US Securities and Exchange Commission; market watchers expect a decision inside the second quarter of next year.A successful ETF listing would make bitcoin more convenient to trade and could increase demand for the underlying asset. “People would now be able to buy bitcoin through their existing brokerage,” White said. “I do believe institutional [buyers] are factoring that information into the price of bitcoin now.”Underlying the question of bitcoin’s future price is whether such booms or busts aid adoption of the currency. After all, bitcoin can only justify its value if people use it. Within the bitcoin industry, there’s a widespread consensus that the current boom is good for the technology, because it’s been more measured and less intense, unlike the frenzied bidding up of its price in 2013.“I think this is a price rise coming purely out of natural demand for bitcoin as a safe store of value,” said GBMiners’ Goswami. “This is a huge indicator of mass trust in bitcoin, I don’t find anything unhealthy about the present causes for this price rise.”Still, if Beijing does decide to step in again, the market’s prognosticators won’t see it coming.

Source: China and bitcoin’s 2017 price: A Beijing intervention could halt its bull run — Quartz