Home Cryptocurrency News Bitcoin Bitcoin Trades Range-Bound As Markets Wait And See

Bitcoin Trades Range-Bound As Markets Wait And See

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Bitcoin has been moving sideways as traders hold back. Shutterstock

Bitcoin prices have been trading within a modest range this week as many&nbsp;investors sit on the sidelines.

The world’s largest digital currency by market value fell to&nbsp;$6,513.10 today, after rising to as much as&nbsp;$6,850.35, CoinDesk Bitcoin Price Index (BPI) data reveals.

This mild volatility fits in with a broader trend, as Bitcoin traded between $6,443.20 and&nbsp;$7,506.68 this week, additional BPI figures show.&nbsp;

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

‘Wait And See Mode’

The “Market is on a full wait and see mode,” said&nbsp;Justin Wu, head of growth at&nbsp;Coincircle.com.

“This is due to multiple factors,” he emphasized, which range from “heavy regulations, to ASIC ETH miners rolling out that will flood market with lot of ETH unless there is hard fork.”

Charles Thorngren,&nbsp;CEO of&nbsp;Noble Alternative Investments, offered a similar point of view on this matter.&nbsp;

“With news of Trade wars, &nbsp;Bad Jobs Reports and an equity market that is in a similar trading pattern it is difficult for BTC to break out,” he stated.

“Many investors are in wait and see mode, this is a long term investors market, and those who have the foresight to take advantage of this pattern will benefit when we see the trading market return,” Thorngren added.

Regulatory Uncertainty

Several analysts mentioned the regulations surrounding digital currencies, emphasizing how uncertain they are.

For crypto investors, and even those who are thinking about getting involved with cryptocurrencies, the number one concern is that countries around the world are still trying to figure out the best way to regulate these digital assets, said&nbsp;Lance Morginn, CEO of Blockchain Intelligence Group.

Robert Leshner, CEO and Founder of blockchain startup&nbsp;Compound, also noted how regulatory intervention could provide serious headwinds for cryptocurrencies.&nbsp;

He singled out the recent&nbsp;Office of Foreign Assets Control (OFAC) update, which could be seen as the U.S. government further clamping down on the use of digital currency.

“The recent announcement by OFAC, amid a wave of global regulatory interest, paints a picture of Bitcoin that is subdued by governments, with less upside for investors,” he stated.

Positive Outlook

However, things are improving, stated&nbsp;Iqbal Gandham, U.K. managing director&nbsp;for social trading platform&nbsp;eToro.

“Clarity on regulation is slowly starting to appear in various countries,” he said.

Further, while Bitcoin’s price is down sharply from the $20,000 level it reached within the last several months, this pullback is largely due to the exodus of “mass market” traders.

Most industry participants felt that this rally took place&nbsp;”too fast too soon,” he stated.

As a result, Bitcoin’s recent price decline may be perfectly natural.

Should the digital currency enjoy rising adoption and greater regulatory clarity, it could experience far more organic price appreciation, climbing at a pace that is more reasonable and more sustainable.

Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.

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Bitcoin has been moving sideways as traders hold back. Shutterstock

Bitcoin prices have been trading within a modest range this week as many investors sit on the sidelines.

The world’s largest digital currency by market value fell to $6,513.10 today, after rising to as much as $6,850.35, CoinDesk Bitcoin Price Index (BPI) data reveals.

This mild volatility fits in with a broader trend, as Bitcoin traded between $6,443.20 and $7,506.68 this week, additional BPI figures show. 

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

‘Wait And See Mode’

The “Market is on a full wait and see mode,” said Justin Wu, head of growth at Coincircle.com.

“This is due to multiple factors,” he emphasized, which range from “heavy regulations, to ASIC ETH miners rolling out that will flood market with lot of ETH unless there is hard fork.”

Charles Thorngren, CEO of Noble Alternative Investments, offered a similar point of view on this matter. 

“With news of Trade wars,  Bad Jobs Reports and an equity market that is in a similar trading pattern it is difficult for BTC to break out,” he stated.

“Many investors are in wait and see mode, this is a long term investors market, and those who have the foresight to take advantage of this pattern will benefit when we see the trading market return,” Thorngren added.

Regulatory Uncertainty

Several analysts mentioned the regulations surrounding digital currencies, emphasizing how uncertain they are.

For crypto investors, and even those who are thinking about getting involved with cryptocurrencies, the number one concern is that countries around the world are still trying to figure out the best way to regulate these digital assets, said Lance Morginn, CEO of Blockchain Intelligence Group.

Robert Leshner, CEO and Founder of blockchain startup Compound, also noted how regulatory intervention could provide serious headwinds for cryptocurrencies. 

He singled out the recent Office of Foreign Assets Control (OFAC) update, which could be seen as the U.S. government further clamping down on the use of digital currency.

“The recent announcement by OFAC, amid a wave of global regulatory interest, paints a picture of Bitcoin that is subdued by governments, with less upside for investors,” he stated.

Positive Outlook

However, things are improving, stated Iqbal Gandham, U.K. managing director for social trading platform eToro.

“Clarity on regulation is slowly starting to appear in various countries,” he said.

Further, while Bitcoin’s price is down sharply from the $20,000 level it reached within the last several months, this pullback is largely due to the exodus of “mass market” traders.

Most industry participants felt that this rally took place “too fast too soon,” he stated.

As a result, Bitcoin’s recent price decline may be perfectly natural.

Should the digital currency enjoy rising adoption and greater regulatory clarity, it could experience far more organic price appreciation, climbing at a pace that is more reasonable and more sustainable.

Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.

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