The significant increase experienced in recent months by Bitcoin (BTC) is past. The world’s most prominent cryptocurrency has reached its lowest level in the last three weeks: this Thursday; it fell to less than $ 32,000.
Consequently, since January 8 of last year, its market value has lost almost a quarter, shattering the all-time high of $ 42,000 that it managed to achieve a few weeks ago.
The acquired loss of BTC has stimulated in the last two days, a trend that can be defined by the observation of hundreds of investors that it has entered a very high level and the fear of greater regulation by the US authorities. Notwithstanding this, the trading price of cryptocurrencies is more than double the level attained in early November.
How will prices unfold?
Recently, John Normand and Federico Manicardi, JPMorgan Chase & Co. strategists, stated in a report indicated by Bloomberg: “Bitcoin has achieved everything important The fastest price appreciation of an asset.” Analysts emphasized that the current price of digital currency “is much higher than the cost of production, so people repeatedly worry about converting it to a lower average yield.”
Other analysts forecasted that the price of Bitcoin might rise above $ 50,000 and fall below $ 30,000 at the same time.
Despite this, Wall Street has not lost interest in digital currencies. On Wednesday, BlackRock Inc. filed a document to add Bitcoin futures as a qualifying investment in two funds. This is the first time that a financial manager has implemented cryptocurrency exposure to their clients.
Matters that the administration of new US President Joe Biden may try to regulate these types of assets also weighed on certainty in the future of Bitcoin. At a Senate hearing on Tuesday, Treasury Secretary Janet Yellen stated that she was concerned that shady individuals could use cryptocurrencies to fund criminal activities.
The Reuters news agency cited Joseph Edwards of Enigma Securities, a cryptocurrency broker, stating that US authorities’ comments had a “significant impact” on prices.
“A lot of the action in the last 36 hours or so has come from Janet Yellen’s comments on cryptocurrencies.”
Still, the Biden administration has not disclosed how it will regulate the use of Bitcoins.
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