Cryptocurrencies like Bitcoin are ‘apolitical’ says financial expert
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Bitcoin remains the most valuable cryptocurrency on the market, with single tokens worth tens of thousands of pounds. The latest estimations from trading platforms place the currency at £33,174 ($46,005) apiece, a 24-hour gain of roughly one percent. Over the last week, the coin has incorporated nearly 20 percent of its value, leading people to question whether it is heading “to the Moon”.
Can Bitcoin go “to the Moon”?
Declaring a cryptocurrency could head “to the Moon” is the most bullish of bullish predictions market observers could make.
Those who confidently declare as such believe their chosen token will astronomically gain value.
But this confidence is often misplaced, especially where cryptocurrency is concerned.
Bitcoin price: Cryptocurrency gains nearly 20 points – can it go to the Moon? (Image: GETTY)
Bitcoin price: The upper limit of Bitcoin’s movement is based on its mined supply (Image: GETTY)
Tokens rely on interwoven factors such as market movement and popular culture via celebrities and social media.
These make them inherently volatile, and regardless of declarations, subject to both unexpected surges and collapses.
As the most valuable coin out there, investing in Bitcoin can prove uniquely costly, with each market drop potentially shaving thousands of pounds off its overall value.
Some experts believe the currency can ride its wave to the Moon and eclipse heights reached in 2021.
Bitcoin price: Bitcoin’s latest movement (Image: COINDESK)
Back in April, it hit a record high of $62,223 (£44,868), and cryptocurrency analyst “PlanB” voiced their confidence that it could push far beyond this to their 652,200 Twitter followers.
Posting on the platform, they said, according to the Stock-to-Flow model published in 2019, the coin could reach dizzying highs anywhere between $100,000 (£72,108) to $500,000 (£360,542).
On the other end of the spectrum, similarly prominent analyst CryptoWhale – who has a Twitter following of 262,800 – said the coin would collapse.
By their reckoning, Bitcoin has entered a “Bull Trap” which will see temporary highs accompanied by devastating lows.
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Bitcoin price: Mark Cuban has also thrown his weight behind the cryptocurrency market (Image: GETTY)
They suggested the token could bottom out at $7,000 (£5,047) after its brief surge.
The analyst suggested they have “finally” seen the movement that determines this “trap”.
They added it might be people’s last chance to sweep profits before a “bear market” takes over.
CryptoWhale wrote: “After my dozens of warning tweets and articles about a bull trap/dead cat bounce at the $30K range, we’ve finally seen it.”
“This is a great 2nd chance to take profits up high before the bear market continues!”
Cryptocurrencies have continued to surge despite recent movements in the sector.
A cross-party budget resolution on a Democrat budget in the US Senate rejected a cryptocurrency tax provision but failed to cave prices across the board.
Ahead of the decision, billionaire Mark Cuban seemed to suggest cryptocurrency would bring sustained growth, telling the Washington Post shutting off its “engine” would be akin to “stopping e-commerce in 1995 because people were afraid of credit card fraud.”