Bitcoin price: Will BTC rise to $70,000? Experts says volatility to ‘grind higher further’
Bitcoin: Cryptocurrecy surges against GBP
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Bitcoin, ethereum and dogecoin are experiencing unprecedented levels of interest on the market right now. BTC’s recent bull-run has been largely attributed to America’s biggest crypto exchange, Coinbase, being listed on the Nasdaq index. “Meme coins” like DOGE, meanwhile, have seen support from the likes of South African billionaire Elon Musk who vowed to put dogecoin on the Moon.
As of 10.45am BST on April 16, bitcoin appears to have hit a stumbling block and is trending downwards.
The virtual token is trading for £44,067.43 ($60,623.03) – down three percent on the last 24 hours.
The drop may have been caused by a sell-off triggered by Turkey’s decision to ban cryptocurrencies.
The Central Bank of the Republic of Turkey (CBRT) said on Friday cryptos and crypto-based assets would be banned as a form of payment from April 30.
According to the CBRT, the decision was motivated by bitcoin’s lack of centralisation and regulation – a key feature of the digital currency.
Veteran crypto adopters, however, are likely to be unfazed by the decision even if short-term investors are deterred.
And after prices shot past the £46,600 ($64,000) mark on Wednesday, April 14, many are now left wondering whether the token can still go from strength to strength.
According to Pankaj Balani, the CEO of Delta Exchange, there is some possibility of the token rising even higher as we go into the summer.
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However, there is also the possibility the market is due a correction and BTC prices could drop to more stable levels.
Mr Balani said: “With BTC around the $63,000 level, the options market is pricing in a 40 percent chance of $70,000 and 31 percent of $58,000 by the end of May.
“Post the recent spike in bitcoin, the shorter dated implied volatility (April, May) has started to trade higher and is only a tad bit short of that of June and September expiries.
“The market seems to be factoring in a big move here and we can expect the realized volatility to grind higher further.
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Although the overall bitcoin sentiment appears bullish, many established investors fear BTC is stuck in a bubble waiting to burst.
A report recently published by CNBC found about 74 percent of professional investors in the Bank of America believe bitcoin is a bubble.
Only 16 percent expressed confidence in the highly volatile market.
It is worth remembering there is no guarantee bitcoin prices will swing one way or another.
Consequently, anyone considering buying the token to make a profit needs to evaluate the pros and cons.
As with all investing, you should never put more money into an asset than you are prepared to lose.
Earlier last month, the Financial Conduct Authority (FCA) warned many young people are putting their money into high-risk options like crypto assets.
Sheldon Mills, Executive Director, Consumer and Competition at the FCA said: “We want to make sure that we encourage the ability to save and invest for lifetime events, particularly for younger generations, but it is imperative that consumers do so with savings and investment products that have a suitable level of risk for their needs.
“Investors need to be mindful of their overall risk appetite, diversifying their investments and only investing money they can afford to lose in high risk products.”
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