The great increase experienced in recent months by Bitcoin is past. The most popular cryptocurrency in the world has reached its lowest level in the last three weeks: this Thursday it fell to less than $ 32,000. As a result, since January 8 of last year, its market value has lost almost a quarter, breaking the all-time high of $ 42,000 that it managed to achieve a few weeks ago.
The accumulated loss of BTC has accelerated in the last two days, a trend that can be explained by the perception of hundreds of investors that it has reached an excessively high level and the fear of greater regulation by the US authorities. Despite this, the trading price of cryptocurrencies is more than double the level reached in early November.
How will prices evolve?
JPMorgan Chase & Co. strategists John Normand and Federico Manicardi recently said in a report cited by Bloomberg: "Bitcoin has achieved everything important The fastest price appreciation of an asset." Analysts explained 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 predict that the price of Bitcoin may 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 provided cryptocurrency exposure to their clients.
Concerns that the administration of new US President Joe Biden may attempt to regulate these types of assets also weighed on confidence in the future of Bitcoin. At a Senate hearing on Tuesday, Treasury Secretary Janet Yellen stated that she was concerned that cryptocurrencies could be used to fund illegal activities.
The Reuters news agency quoted Joseph Edwards of Enigma Securities, a cryptocurrency broker, as saying that such comments from US authorities 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." However, the Biden administration has not explained how it will regulate the use of Bitcoins.
