Bitcoin’s breakout rally seems to have hit a wall, with prices ready to end the week just under $ 40,000.
After the start of the year with a surprise Wall Street surge, the volatile cryptocurrency has been tied to range in the last few days. Bitcoin traded around $ 38,280 as of 11:45m in London, set for a 4.4% fall on the week, the highest number since November.
“I think Bitcoin is real, there’s more to run, and the recent sale may have been profitable,” said Gregory Perdon, co-chief investment officer at Arbuthnot Latham in London. ” I understand why people think it’s deja vu of this 2017. “
The major gains in Bitcoin have recently refreshed the debate over whether it is a real asset class or a speculative bubble. Proponents say cryptocurrencies make sense at a time when central banks are printing money and the market infrastructure is rapidly improving. Critics, on the other hand, argue that Bitcoin is another indicator of market broth, with prices likely to be manipulative.
Either way, more regulators are starting to take a closer look at the market. The UK financial watchdog issued a warning this week that consumers who bet on cryptocurrencies should be prepared to lose everything.
“Cryptocurrencies are not sustainable,” said Peter Branner, chief investment officer at APG Asset Management. “Bitcoin is not backed by a central bank. It only has value if people value it. “
This story was published from a wire group group with no text changes. Only the headline has changed.