Bitcoin’s price spiked today, breaking the £4,876.01 ($6,350) and £4,895.20 ($6,375) resistance against the US Dollar.
Bitcoin was valued at £4,937.20 ($6430.07) today at 3.20pm GMT, according to CoinDesk.
It comes as the price rocketed by £74 ($97) in just one hour yesterday afternoon.
The cryptocurrency’s price has moved into a bullish zone against the US Dollar.
The bitcoin price has also found a strong buying interest against the US Dollar.
The upside move was strong as the price even settled above $6,375 and 100 hourly simple moving average.
Buyers pushed the price above the £XX to £XX ($6,410 to $6,420) resistance zone and a new weekly high was formed at £4,969.69 ($6,472).
Later, the price started a downside correction and declined below £4,945.12 ($6,440).
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Can bitcoin hit £38,393.75 ($50,000) this year?
Cryptocurrency portfolio manager Jeet Singh has voiced his belief at the recent World Economic Forum that the current market volatility is to be expected.
Mr Singh said it is normal for cryptocurrencies to fluctuate by around 70 percent to 80 percent, which is why the turbulence does not concern him.
Mr Singh compared cryptocurrencies to the current market leaders like Google and Apple.
These companies’ stocks suffered from initial periods of volatility.
As their business model developed, however, the companies’ stock not only rose but became additionally more stable.
Because of this, the portfolio manager thinks the current volatility should not concern long-term crypto buyers.
Mr Singh believes bitcoin could reach highs of £38,393.75 ($50,000) this year.
Jonathan Hafen, president of Parr Brown LLP, also sees the market in a positive light: “Having litigated securities issues for many years, I can’t emphasise enough what is perhaps the most important factor for entrepreneurs, investors, and regulators: predictability.
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“By adding resources in this area, which is in the midst of explosive growth while remaining notoriously unpredictable, the SEC is providing increased predictability from an enforcement standpoint.
“That is just what we need right now.”
Many investors, however, remain concerned about investing in bitcoin.
Many are just holding onto their holdings patiently in order to find out whether the cryptocurrencies resume their uptrend or not.
On the other hand, institutions are increasing their presence in the cryptocurrency space as well.
This is certain to add value and credibility to the cryptocurrencies.
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