Bitcoin’s price was expected to drop temporarily
After jumping around 15 percent and reaching it’s record high of $11,434, Bitcoin’s price has fallen more than 20 percent on the same day to recover a bit, later in the same day and traders witnessed a bumpy volatility in the crypto-market.
However, experts stated that this was the usual reaction of the cryptocurrency after reaching to it’s record high every time. As you can see the chart of Bitcoin price index, most of the times it created a new high and fell down around 20 percent soon. Furthermore, analysts expected a bounce back to the $10,000+ level by next week.
Bitcoin is being accepted by many companies and organizations, even it’s finding market acceptance as major exchange operators like CME Group and Nasdaq is said to be launching bitcoin futures soon.
At its $11,434 peak on Wednesday, bitcoin was up more than 12-fold for the year — or more than 1,100 per cent. The digital currency rose through both $10,000 and $11,000 levels for the first time, according to Bloomberg data.
Meanwhile, the vice president of the European Central Bank (ECB) yesterday warned about the risks of investing in bitcoin at current valuations. Speaking to CNBC, Vitor Constancio said developments in bitcoin’s price make it “a speculative asset by definition,” continuing:
“Investors are taking that risk of buying at such high prices.”
As the price is moving up every month, investors and market experts are worried of the possibilities of a bubble burst, soon or later. What’s your view on this?