Bitcoin 'not seen as a currency for transactions' says expert
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At 9.30pm on Wednesday, Bitcoin traded at £19,382.62 or $23,681.39. While a slight rebound over the week, the latest figures are still down £12,730.25, or 39.64 percent, from its heights six months ago.
Dr. Martin Hiesboeck, head of blockchain and crypto research at Uphold, told Express.co.uk that Bitcoin continues to “treads water, flirting again with the 24k level”.
He said: “The market is subdued, but every move down is immediately met with large orders mainly from big (presumably institutional) wallet addresses.
“Many investors are concerned the macroeconomic outlook won’t improve anytime soon, so they sell every price increase.
“At the same time, institutions and savvy investors seem to think that Bitcoin has formed a bottom and continues to accumulate.”
Addressing the cryptocurrency’s middling performance in recent months, Dr Hiesboeck added: “With the small amount of Bitcoin on exchanges, such moves often drive excessive price action at least in a daily basis.
“We observed fewer miner-related transactions this week, and a general sense of wait-and-see seems to prevail.
“Bitcoin has a hard time going anywhere at this moment, but looking at it from a long-term perspective, this seems to be an accumulation point and whether Bitcoin drops further doesn’t much matter for the millions who believe in it.
“The fact it hasn’t dropped significantly over the past weeks as we digested some really bad news is a turning point.”
Other experts have noted Bitcoin’s struggles to rebound back after a market crash in May.
Crypto expert Wendy O told NextAdvisor: “We’re in a full-blown bear market, not a bear cycle. Just because we see some positive price action doesn’t mean we’re out of the clear.
“We’re currently trading (Ethereum) at $1,500, and in order for me to be super bullish on Ethereum, I would need to see us break above $2,248. That’s a 50 percent price pump right there.”
Joe DiPasquale, CEO of crypto asset manager BitBull Capital, told inews: “While Bitcoin saw positive momentum this week, it remains range-bound when you take a broader view, and is still struggling to cross the $22,000 resistance.
“For now, we remain interested in the bottom of this range when it comes to Bitcoin’s price, and are monitoring for accumulation during this range-bound movement.”
As of 3pm on Monday, Bitcoin traded at £19,937.45, down a staggering 43.48 percent from the same point last year.
On August 8 2021, Bitcoin was rallying at £35,275.77, before hitting an all time high of £55,291.19 on November 8.
Monday’s figures also represent a drop of £12,641.01, or 38.8 percent in six months.
However, the figures are up £19,934.31, or 10.1 percent, in the past month.
In May a stablecoin Terra, which was intended to have a fixed value of $1, collapsed to below half of its stable value, prompting the cryptocurrency market to crash.
Bitcoin and ethereum, the two biggest cryptocurrencies, shed 5 percent and 12 percent respectively, extending losses that saw both fall more than 20 percent over the week prior.
The selloff took the combined market value of all cryptocurrencies to $1.2 trillion, less than half of where it was last November, based on data from CoinMarketCap.
On June 18, Bitcoin and the cryptocurrency market as a whole crashed, with Bitcoin falling to £15,499.41.
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