Is Bitcoin’s growing stability a sign of good things to come?
After being faced with insane bearish pressure over the past 30 days, Bitcoin is now exhibiting bi-weekly losses of around 6%.
- Experts believe Bitcoin can still scale past its US $100,000 projection within the next 12 months
- Bitcoin is currently exhibiting YTD gains of nearly 25%
- Miami Mayor Francis Suarez recently revealed that he holds substantial sums of Bitcoin and Ether in his portfolio
The last 24 hours have seen Bitcoin, the world's largest cryptocurrency by total market capitalization, continue to showcase a decreasing amount of volatility — particularly around the AU $48k mark. In this regard, it should be pointed out that over the course of the last week, BTC has just lost 2% of its value and at press time, the premier digital asset is trading at AU $49,350.
Providing his insights into how the future may unfold for Bitcoin, Todd Crosland, CEO of cryptocurrency exchange CoinZoom CEO, told Finder that despite all of the ongoing financial turbulence, the fundamental value proposition put forth by the digital currency has not changed even in the slightest, adding:
"In just one year, Bitcoin went from US $7,000 to over US $64,000. With that kind of meteoric rise, there is bound to be profit taking, volatility, and retracement. The long-term bull case for Bitcoin is still intact, and we believe Bitcoin will reach US $100,000 in the next 12 months."
Similarly, Gunnar Jaerv, COO for First Digital Trust, an Asia-based licensed, trusted and regulated trustee servicing both traditional and digital assets, believes that there is enough data to suggest that the crypto market is beginning to stabilize. "This could indicate an exhaustion of bears and could mean bulls will take over, or it could indicate the indecision of the markets as both bears and bulls decide which way the market will go," he added.
Jaerv closed out by saying that traders should be extremely wary when trading at this time — especially leverage traders — as we have seen time and again that after a massive sell-off, the market is usually ridden with an extremely high level of volatility.
Miami mayor admits to owning Bitcoin
Francis Suarez, mayor of the city of Miami and well known crypto enthusiast, recently revealed that his crypto consists of various digital assets, including Bitcoin and Ether. During a recent appearance on CNBC's Squawk Box, Suarez revealed that following President Biden's decision to issue a US $1.9 (AU $2.8) trillion stimulus package to help ease out the economic devastation caused by the COVID-19 pandemic, he ended up buying a lot of crypto as he knew "a high degree of inflation was inevitable".
Disclosure: The author owns a range of cryptocurrencies at the time of writing