Bitcoin prices turned up sharply after days of challenging investor sentiment. Experts forecast that the price of this currency could reach 50,000 USD / dong before the bubble burst.
According to the Coindesk, on January 14, Bitcoin price spiked 10.82% from a day earlier 38,400 USD/ dong, pulling up the Bitcoin market capitalization 700 billion USD. Before that, after setting close records 42,000 USD/ dong, Bitcoin price experienced three days to challenge investor sentiment with drops of up to 25%.
Bitcoin price increased by nearly 400% in the past 12 months. Since the beginning of 2021, this cryptocurrency has increased in value by 30%. Some experts say Bitcoin price will continue to soar. However, there are also people warning the bubble will crumble to an even more serious extent in 2017.
Bitcoin price experienced three days of slipping nearly 25% after setting a new record. Photo: Reuters.
“Bitcoin turned positive after US stocks rallied. Virtual currency fans also felt the warning from Britain’s financial regulator and the harsh criticism of the President of the European Central Bank (ECB). ) Christine Lagarde “, financial expert Edward Moya at consulting firm Oanda (USA) told reporters.
He believes that the main driver for Bitcoin’s rise is the supply and demand story. Accordingly, the Bitcoin market remains unbalanced due to the inability of the supply to keep up with the demand from institutional investors and retail investors. “As a result, the price of Bitcoin may fluctuate, but the crash in 2018 will not happen again,” said the financial expert.
In the “hunt for profits”, cryptocurrency will be one of the top choices of investors. Because in 2021, a series of central banks around the globe can lower the value of the currency to speed up the economic recovery. “Cryptocurrency is not going away anytime soon and Wall Street has acknowledged that fact,” Moya stressed.
Bitcoin price rebounded above the threshold of 38,000 USD / dong after several days of slippage. Photo: Coindesk.
Bitcoin’s decline over the past few days has not threatened the flow of money from any new institution investing in cryptocurrencies. “The supply crisis in the Bitcoin market is still not going away anytime soon. That should help the price to fluctuate in the 30,000-40,000 USD/ dong, “said Moya at Oanda.
Meanwhile, financial expert Craig Erlam (based in London, UK) believes that the price of Bitcoin will reach the threshold 50,000 USD/ dong, even bigger for a short period of time. “But such hot rises often do not end well, especially when the uptrend is entirely driven by pure speculative motivation,” Mr. Erlam stressed.
Bulge before crumbling
Recently, the UK Financial Administration (FCA) warned consumers should “be prepared to lose money” if investing in assets like Bitcoin. “The significant price volatility of cryptocurrencies, coupled with inherent difficulties in valuing cryptocurrencies reliably, puts consumers at high risk of losses,” the agency said. strong.
“The complexity of some crypto-related products and services can leave consumers at risk,” the agency added. According to the FCA, there is no guarantee that cryptocurrencies will be converted to cash. The transformation is entirely dependent on the supply and demand in the market.
On January 13, European Central Bank (ECB) President Christine Lagarde also criticized Bitcoin “facilitating criminal acts”. “For those of you who think Bitcoin can be currency, I’m sorry, but it’s a highly speculative asset,” she said. The ECB President emphasized that Bitcoin allows “illegal business and money laundering”.
Bitcoin also facilitates a number of other offenses. According to cybersecurity firm Check Point, many scammers sold the Covid-19 vaccine on the dark web, demanding payment in Bitcoin and not shipping.
Worth mentioning is that all the sellers of fake vaccines on the dark web demanded payment in Bitcoin. This cryptocurrency was once considered an anonymous form of payment. Even now, they are much easier to follow.
“It’s not yet the time for the Bitcoin bubble to fall,” said financial expert Erlam. “I believe that the Bitcoin bubble has formed and will eventually crumble. But before it collapses, the bubble can be inflated even more. The collapse is much more serious in 2017,” he warned newspaper.
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