In recent times, Bitcoin has been doing quite badly. In fact, some industry experts have warned that the price could fall to near zero any time. However, it has recently managed to climb back over the $11,000 mark, quelling fears that it was in free fall. At the start of February, the coin experienced a major sell-off amid fears that it was facing tougher regulation. However, those fears appear to have gone away.
On Sunday, the digital coin hit a high of $11,279.18, which was its highest since January 30th. This figure was according to the Bitcoin price index on Coindesk, which tracks the prices of the four leading digital exchanges. However, by Monday, the price had dropped off slightly to about $10,789 at 9.30am London Time.
The Prices Are Still Climbing
At the start of February, most retail traders began selling off their coins amid fears that regulators would clamp down on Bitcoin. Besides this, there were suspicions of price manipulation. However, the straw that broke the camel’s back was when it was revealed that Coincheck had been hacked and over $500 million had been stolen by crooks. On February 6th, the coin bottomed out at $5,947, the lowest it has been this year.
Another cause for the drop was the fear that South Korea would ban Bitcoin. However, as new measures were rolled out, investors began to see that they were less severe than they had expected them to be.
Others that have helped to quell the fears include the Commodities Futures Trading Commission (CFTC) chairman and Securities Exchange Commission chairman, who gave testimonies at the Senate Banking Committee on the issue of digital coins. They both struck a positive note, with the CFTC chairman saying that regulators should have a “thoughtful and balanced response and not a dismissive one”.
Because of this, most investors are no longer afraid of tighter regulation. More people appear to be coming back to the crypto markets, with both Ethereum and Ripple above the lows that were seen at the start of the month.
More Experts Enthusiastic
Tom Lee, who was the first major strategist from Wall Street to cover Bitcoin, recently said that he expected it to rise above $25,000 by the end of 2018. Another expert who predicted the rally at the end of last year claims that bitcoin could hit a high of $100,000 by the end of the year.
However, not everyone is so bullish about the coin. Some organizations and figures show that crypto could still crash. In a note this month, Goldman Sachs said that digital coins had a high chance of falling to zero. The founder of Ethereum has also echoed similar sentiments. He said that there was a good chance of digital currencies falling to zero due to their volatility.
What do you think about the recent price rally by Bitcoin? Leave us your thoughts in the comments section below.