Bitcoin recovery leaves investors excited, yet wary
Dubai: For most cryptocurrency market investors, one
question that stirs up both excitement and trepidation looms large:
Could this be the start of a Bitcoin bull run?
In a classic case of once bitten, twice shy, memories of December
2017 — when the cryptocurrency made stratospheric gains before coming
down with a thunderous thud — come flooding back.
Then, the digital asset hit a peak of $19,000 (Dh69,787), prompting
many to jump in, before tumbling to settle around $7,000 in the space of
just two months. And true to Warren Buffett’s age-old investing wisdom —
“It’s only when the tide goes out that you learn who’s been swimming
naked,” — many were caught flat-footed and more terribly singed.
Which is why caution is the keyword this time around, especially
after Bitcoin, which was trading around the $4,000 mark, sprang back to
life on Tuesday, sounding the horn of opportunity and riches galore to
both investors and fence-sitters.
This was after a major order by an anonymous buyer set off a
frenzy of computer-driven trading, pushing up prices. The order worth
about $100 million was spread across US-based exchanges Coinbase and
Kraken and Luxembourg’s Bitstamp.
Eager not to be caught on the wrong side of the fence, wary investors
did not rush to place new positions after the digital asset gain $700
in just one day.
With the rally continuing, Bitcoin traded at $5,017.99, up 4 per cent
on Wednesday, fuelling market speculation as to whether this was the
big wave they had been waiting for, the one that would drive a recovery
in prices.
But some analysts are not that bullish.
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