No time right now?
The Bitcoin rate crashed by several thousand US dollars in one day. While some analysts are expecting a new rally, a UK authority is warning crypto investors of total loss.
In view of the price explosion from 20,000 to over 40,000 dollars in the past four weeks, observers had predicted a gross price correction for Bitcoin. A corresponding slump in the prices of Bitcoin and other cryptocurrencies has destroyed around 200 billion dollars within 24 hours of the crypto market, which has now exceeded a trillion dollars. Bitcoin alone has since dropped by almost 10,000 euros to around 30,500 dollars. Intermediate low or imminent bursting of the crypto bubble?
Dramatic warning from the financial market regulator
The British financial market regulator FCA watched the crypto hype of the past few weeks while the high volatility continued a drastic warning compelled. People who invested in cryptocurrencies could lose all of their money, according to a statement. The FCA is monitoring a number of companies that would advertise high returns in the crypto space. However, they did not make it clear enough to investors that these were high-risk investments.
Meanwhile, some analysts are positive about the crypto future despite the current price slump. Reaching the $ 40,000 mark appeared to be the trigger for many investors to reap the profits of the past few weeks. Now, explained Jehan Chu, founder of the venture capital company Kenetic Capital, which specializes in cryptocurrencies opposite CNBC, investors would have the chance to buy more. According to Chu, the Bitcoin price could hit the $ 50,000 mark in the current first quarter. At the end of 2021, $ 100,000 will be in it.
Bitcoin: virtual gold or giant bubble?
Analysts at the major bank JP Morgan even see the possibility that Bitcoin could be worth $ 146,000 in the long term. The cryptocurrency is gradually taking over the role of gold as a safe haven in times of crisis. However, it is necessary for Bitcoin to be less volatile. Some experts even expect rates of $ 250,000 or more. For Cyrus de la Rubia, chief economist of the Hamburg Commercial Bank, the. Because of the high energy consumption, at least until the next halving, the upper bitcoin price limit at $ 100,000. Critics like the analyst David Rosenberg, on the other hand, see a bubble in Bitcoin and Co.