CoinShares Chairman and ex-JP Morgan Global Energy Trading Desk Leader Daniel Masters predicted an upcoming bull run in 2018 that would see Bitcoin return to previous highs – as long as two critical changes take place in the crypto ecosystem.

In an interview with CNBC, Masters explained that Bitcoin will experience another rally, provided that the crypto market matures, and stressed the importance of indices and benchmarks for institutional investors to enable market participants to achieve meaningful performance:

“WE MUST SEE HOW THIS [CRYPTO CURRENCY] STRUCTURE CONTINUES TO DEVELOP.” WE HAVE TO SEE HOW THE CUSTODY SOLUTIONS…ARE PROVIDED. WE NEED INDICES AND WE NEED PERFORMANCE MEASUREMENTS WHERE WE CAN START TO UNDERSTAND WHAT WE ARE TALKING ABOUT AND MEASURE OUR PERFORMANCE.”

ICO ecosystem must be overhauled, Ethereum code is inevitable

For Ethereum code to reach earlier highs, according to Masters, the current paradigm of ICOs must evolve. According to Masters, Ethereum code investors are not sufficiently informed, although the status of tokens and the respective project is an important issue:

“WE NEED TO DO MORE MATURE WORK ON THE ICOS SO THAT WE HAVE A SYMBOLIC LIFE CYCLE AFTER THE ICO AND SIMPLY OFFER INVESTORS MORE CLARITY, BETTER EXPECTATIONS AND MORE TRANSPARENCY.”

Regulations are necessary for the Bitcoin trader to mature

Bitcoin trader highlights the opaque regulatory status of crypto currencies and describes the “regulatory sandbox” in which crypto currencies have been placed for five years. As total market capitalization has jumped last year, traditional financial institutions and regulators are beginning to take Bitcoin more seriously.

“CENTRAL BANKS AND GOVERNMENTS DECIDED THEY CAN NO LONGER BE IGNORED.”… BUT I THINK THEY’RE STARTING TO SEE THAT THERE’S POTENTIAL FOR THAT IN THE FUTURE.”

Bitcoin forecast: Crypto market will grow drastically
Masters, who currently manages over 800 million dollars through BitShares, explains that while there will be no struggle between Bitcoin and the traditional financial system, crypto currencies will improve part of the financial system.

The statement that we will see new highs in 2018 seems almost impossible at the moment if you look at the prices in detail. A year ago today, the Bitcoin price was still at $2,362.70. The price rally did not start until the end of July and within a few months it almost increased tenfold. Interesting is also the 24h volume in comparison 2017 to today. The daily trading volume has increased incredibly and shows the strong presence of Bitcoin.

So far there has been an immense price increase for crypto currencies after every successfully mastered technological challenge. Ethereum was able to gain immense profits through its own progress. We are currently in one of the most exciting phases. Blockchain technology is widely supported, governments are researching policies and regulations that can access crypto currencies, and Bitcoin is working with the Lightning Network on the biggest challenge yet.