Bitcoin (BTC) and other digital currencies continue to make wild swings which are caused by several unanswered questions that market forces have yet to respond to. Divided market opinion between the market pundits and business magnates over the future fundamentals are adding to bearish sentiments.
This is because bitcoin and other digital currencies are making more significant downside swings than upside moves in the last three months.
Bitcoin price volatility extended into this week; BTC price had hit almost $10,000 in early trade on Monday before fumbling back below $9,000 later in the day – the coin continues to trade in the range of $9,100 level in Tuesday trade.
Is it the Perfect Time to Own Cryptocurrencies?
Though bulls believe that bitcoin and the rest of cryptocurrencies are likely to make steady upside growth this year, there is no evidence to think that the financial world will accept digital currencies as an alternative to traditional currencies.
Along with the lack of underlying value, the price volatility is among the biggest weakness of cryptocurrencies to believe it as an alternative currency, analysts say[1].
Goldman Sachs claim[2] the risk of plunging below the February lows of $6000 is inevitable.
Regulators have started taking essential steps, including registration of exchanges to help crypto markets to build traders confidence. While it’s just the beginning, they have to dig deeper into crypto markets to completely vanish the illegalities and price manipulation scams.
Bitcoin price isn’t reacting strongly to regulators actions; the involvement of huge trading volume from illegal activities continues to impact prices – criminals don’t appreciate SEC interference in crypto markets. Bitcoin expert Tom Lee said[3] it will be a very “tough time to own” digital currencies in the coming weeks.
