Over the past few weeks, the price of virtual currency Bitcoin has fluctuated greatly, soaring to nearly $ 14,000 on June 26 before returning to about $ 9,000 on July 2. Since the beginning of the year, this virtual currency has recovered nearly 70% of the value. Since the beginning of the year, this virtual currency has recovered nearly 70% of the value.
According to Naeem Aslam, head of market analysis of ThinkMarkets FX, an increase over the $ 10,000 mark of Bitcoin on June 21 has sent a strong signal to retail investors that Bitcoin has returned. This is the first time this virtual currency has surpassed the price of $ 10,000 since March 2018. Some other virtual money like Ethereum, XRP, Litecoin and EOS also increased, CNN said.
Lennon Sweeting, institutional investor manager for Coinsquare Capital Markets, said major investors are taking advantage of the short-term volatility of the virtual currency. Some big investors are still holding lots of Bitcoin and can have a big impact on the market.
Analysts say that the recent unexpected volatility of Bitcoin has some fundamental causes. According to Aslam, the social network Facebook plans to release virtual currency called Libra is a cause. He said it would not be surprising to see Amazon e-commerce company or other technology and retail giants want to enter the virtual money market.
However, Facebook’s Libra is also controversial, especially when the social network is still addressing the question of turning roles in global elections over the past few years and the spread. of fake news on its platform.
Sweeting said many investors were excited about the effects Libra brought to Bitcoin. However, he stressed that the difference between blockchain and Bitcoin is worth noting. The Libra push is likely to promote the widespread adoption of blockchain but does not mean the same thing for Bitcoin virtual currency.