Do Not Invest in Bitcoin Until Its Value Stabilises – Expert
Bitcoin’s prices have seriously undergone a rollercoaster experience after being skyrocketed to new highs of $20,000. Currency trends expert Chris Verrone gave warning to the investors to hold off investing in the cryptocurrency (Bitcoin) until its value stabilises.
Bitcoin’s price has plummeted to a two-month low last Friday after going through an unanticipated growth spurt shortly before Christmas.
Mr Verrone said the crash indicated that the financial sector is not prepared to “own bitcoin yet” and investors should wait to dive into the crypto market until prices stabilise.
He stated: “We are not ready to own bitcoin yet. I think this goes lower before it ultimately goes higher.
“The trend is clearly down: we are down 60 percent from the highs not long ago. Until it stabilises you can’t touch it.”
Bitcoin is crashed down to $6,831.84 at 7:28 pm on Monday after UK high-street bank Lloyds disallowed all cryptocurrency payments on its credit cards.
The ban extends to other household names in the banking giant’s credit card family including Bank of Scotland, Halifax and MBNA.
Bitcoin Wallet holders would have been hoping for a better start to the week but news of another mainstream finance firm being spooked by price volatility as well as regulatory threats means that other credit cards retailers around the world will be studying the fallout from Lloyds’ ban.
Concerns have emerged among credit card providers because their customers have increasingly been using credit cards to fund accounts on online exchanges, which are then used to buy the digital currencies.
The previous week, Mastercard, the world’s 2nd biggest payments network, said customers purchasing cryptocurrencies with credit cards fuelled a 1 % increase in overseas transaction volumes.
But Mr Varrone remained optimistic over bitcoin, stating that it was “too early” to declare bitcoin was completely finished.
He explained to Bloomberg: “Despite a 60% drawdown, bitcoin is still above its 200-day average. Look at the 200-day average as the position where this ultimately shakes out.
“I think it’s too early to say this is finished forever. This is a really really good shake out after an exceptional move.”
The financial consultancy deVere group forecasts that the demand for cryptocurrencies will “skyrocket” in the next twelve months.
Bitcoin, the group affirms, could gain by 50 to 60% and will remain highly volatile as it comes under “increasing pressure” from Ethereum as well as other cryptocurrencies.
Bitcoin’s competitor Ripple XRP is also anticipated to see price soars over the coming months should the firm succeed in striking new deals with leading financial companies.
Ripple’s advantage over other currencies is its near-instant international payments, which are processed just within 10 -15 seconds.
Ripple was trading for $0.69 at 7:28 pm while the 3rd cryptocurrency big name Ethereum was selling for $674.8.
In previous week the Ripple team completed two (2) new partnership agreements.
The first partnership agreement was with the telecom company IDT while the second agreement was with international payment service MercuryFX.
Ripple will also test the functionality of xRapid Ripple, based on the Ripple token (XRP), which has been aimed to lower commissions when using it to make payments.