As Bitcoin plunged 5% within one hour, crypto investors are trying to get a grip on the wild ride.
The world’s number one digital asset went from $ 7,381 to $ 7,118 in 30 minutes, dragging altcoins down by double-digit percentages that stripped $17 billion from the cryptocurrency market, which has settled around a valuation of $220 billion.
The price of Bitcoin and the market sentiment surrounding its viability as a forward-thinking technology are notoriously hard to predict. Even though there’s a growing number of Bitcoin ATMs and more payment processing options for merchants who want to accept crypto, speculation and profit-taking are on top, hand-in-hand with volatile moods and Bitcoin’s market swings.
The current market climate highlights ongoing regulatory uncertainty. Without clear guidelines or some specific act of approval from the SEC, such as a Bitcoin ETF, the clear signs of increased adoption along with new crypto products and more players entering the space will be tempered by some degree of uncertainty.
But that uncertainty hasn’t stopped the tech from drawing massive interest since 2015 and enticing investors, speculators, developers and governments that are trying to emulate some of Bitcoin’s properties and brand appeal.
The narrative, however, pivots on a dime depending on upcoming regulations, rulings and other developments.
Whether it’s the acquisition of a crypto exchange by Japanese tech giant Rakuten at the start of the week or today’s next flip-flop from Goldman Sachs on building up a crypto trading desk, as reported by Business Insider, despite Goldman’s investment in crypto startup Circle, Bitcoin remains more of an epoch than a flash crash.
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