Bitcoin price LIVE: BTC fell this weekend
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Bitcoin is priced at $6,249 this morning after the weekend wobbles passed without further losses.
This week we’re responding to comment from Brian Kelly, founder and CEO of BKCM LLC, who replied to questions on the latest BTC price plunge by telling CNBC on Sunday – “this is not the funeral for bitcoin whatsoever.”
Daniel Wolfe, CEO of the blockchain-based marketplace of trading algorithms Tradingene told Express.co.uk that “extreme volatility” has been a longstanding characteristic of bitcoin.”
He said: “During 2017’s dramatic increase in the value of BTC, for example, BTC’s price fell over thirty percent five times! To see the recent downturn as a meaningful deviation from BTC’s historical performance is therefore a mistake.”
The lack of institutional-quality infrastructure and the natural caution of institutions means that there is a substantial lag between the appearance of institutional interest and actual demand from institutions.
Mr Wolfe adds that with even at its highest point, the capitalisation of all cryptocurrencies was a small fraction – less than one percent – of the capitalisation of all fiat currencies.
He says that we are still in the very early stages of the birth of this asset class, and expects to will see a sustained increase in cryptocurrencies over the next few years, just as he expects we will also see enormous volatility over that time period.
On the current price patterns he said: “There are reasons that might explain the sustained ‘sideways’ market for BTC and other leading cryptocurrencies.
“First, the vast majority of ICOs that raised cryptocurrency last year are now spending fiat to develop their products and markets: this creates sustained demand for fiat currency.
“Second, while there is increasing interest from institutional investors in crypto, the lack of institutional-quality infrastructure and the natural caution of institutions means that there is a substantial lag between the appearance of institutional interest and actual demand from institutions.
“And third, many of the ICOs completed last year were weak, leading to widespread declines in value for ICO tokens; this has led to increased caution from investors. This represents a welcome – and likely permanent – respite from the madness of 2017, when tens of millions were raised by projects with little more than a website and a White Paper.”
Got something to add? Send your reaction / thoughts / analysis / price predictions over to @DavidGDawkins.
Updates below throughout the day….