Despite that the price of bitcoin was on track for biggest weekly fall since September on Friday, it picked up. Bitcoin recovered from a sharp fall overnight to stand at $32,500 on Friday morning. Just this Monday the bitcoin price slipped around 9% and it goes sharply up!
As we know, Bitcoin came under selling pressure this week after Janet Yellen, Joe Biden’s pick for Treasury secretary, suggested the use of cryptocurrencies should be restricted because they were used mainly for illegal financing. Also, we had an issue of “double spend.”
However, BitMEX, later on, said that the double-spend could have in fact been another type of less troubling transaction.
Supporters say cryptocurrencies are fast becoming safe-haven assets that can shield investors’ portfolios against the danger of inflation and currency devaluation generated by the extraordinary fiscal and monetary incentive released during the coronavirus pandemic.
A number of institutional investors showing interest in Bitcoin is also growing. The demand for the currency was announced by BlackRock.
Still, regulators and opponents have cautioned that cryptocurrencies like Bitcoin have no vital components driving their value.
On the other hand, market interest has picked up sharply in recent months. Some analysts said the recent fall could be an opportunity. It will certainly be an interesting watch over the coming weeks.