Bitcoin Returns To USD 40,000 In Four Days
The most popular cryptocurrency, bitcoin (BTC), just got back to the USD 40,000 level after leaving it this past Sunday and crashing to almost USD 30,000 on Monday. (Updated at 17:55 UTC with comments from Oanda Europe and Man Group).
At 15:38 UTC, BTC traded at around USD 40,039 before correcting lower towards USD 39,632, per Coingecko.com data. The price is still up by 14% in a day and 7% in a week. It more than doubled in a month and rallied by 389% in a year.
"It should come as no surprise to anyone that Bitcoin has bounced back so quickly," Craig Erlam, senior market analyst at Oanda Europe, was quoted as saying by Bloomberg. "We know it’s an extremely volatile instrument — the only difference this time is the absolute numbers are now much larger due to its growth over the last month."
Also, as reported yesterday, BTC's volatility is simply part of the price discovery in a new asset class, and these are not bubbles, analysts at Man Group, the world’s biggest publicly traded hedge fund firm, said. According to them, this volatility is "part of a not-so-random walk that will eventually dwindle to give bitcoin more stability, and ultimately, legitimacy."
As reported today, trading and investing platform eToro has sent out a warning to its users that it may limit buy orders this weekend, while others warn of drying liquidity, suggesting that the demand for BTC is growing further and the shoeshine indicator "isn't relevant in this current cycle" when Google searches for "bitcoin" are nearing all-time high of 2017.
Also as reported, this week, US-based major digital asset manager Grayscale Investments said that most of their private placements are now open for daily subscription again after they were temporarily closed at the end of 2020. Grayscale Bitcoin Trust is the largest trust controlled by the company and has over USD 20bn in assets under management.
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