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The recent problems of Bitcoin have led some to question the future of cryptocurrencies. The price of the bitcoin has plummeted by 80% in 2018, with the firing of this month triggered by the rival cryptocurrency, the bitcoin money, which has split in two due to developers and miners disagreeing about its future. But the bitcoin is back recently, surpassing the $ 4,000 psychological mark (£ 3,129) after falling to $ 3,600 (£ 2,816) last week, according to CoinDesk.com.
Samantha Robb of Wirex, a supplier of cryptocurrency portfolios linked to Visa debit cards, believes that market tensions are responsible for the route that canceled billions from the world's largest cryptocurrencies.
The fact that Bitcoin does not have an intrinsic value makes it extremely vulnerable to investor sentiment
He said: "Due to the fact that Bitcoin has no intrinsic value it is extremely vulnerable to investor sentiment.
"You have three main camps – those that entered the market when Bitcoin traded near $ 20k and those who would have bought for $ 1k.
"The field in a highly negative territory is hoping to recover some losses, perhaps with an average dollar cost.
"Those who have tried FOMO are tentatively testing the waters hoping to capture another $ 20K wave.
READ MORE: Could BTC could trade at $ 20,000 YET by 2020?
Bitcoin price news: BTC has lived two miserable weeks (Image: Getty)
Bitcoin price news: Crypto's problems have led some to question the future of cryptocurrencies (Image: Getty)
"The third field is traders who take advantage of volatility and minute-by-minute trading.
"All these actions create a perfect storm of unrest – there is absolutely no way to predict what will happen in the next few days, let alone weeks or months.
"As long as the markets are not fully regulated and everyone is singing from the same hymn in terms of position within the consolidated markets, we will continue to see this kind of volatility.
"Wirex plays a huge part in bringing cryptocurrencies into the mainstream by providing a secure and instant payment platform for users.
"However, this is a great beast to tame and will bring regulators, traditional players and innovators to work unison to bring stability to the crypto-market," he said.
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The Bitcoin trade has proved to be a volatile market in the last 12 months.
Stephen Innes, in charge of trading in the Asia-Pacific area of Oanda, believes that the bitcoin could fall from $ 2,500 (£ 1,957), arguing that the behavior of the business in recent months has not shown to investors that a minimum has been reached.
Despite the statements of "fortune tellers", Mr. Innes said that the current situation remains decidedly negative for investors, who will therefore continue to avoid buying bitcoins.
The key factor behind this according to him is the atmosphere of uncertainty about where the market is heading, while the bitcoin continues its protracted run at the bear.
He said: "What I'm looking at here is the way the coins have been exchanged in the last few months.
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Bitcoin price news: market tensions are responsible for the defeat? (Image: Getty)
Bitcoin price news: BTC has recently recovered some sort of return (Image: Getty)
It is indicated that the fund is not in a way so I do not think any mature investor is willing to take this falling knife.
"And this tells me that there's more space to go and as soon as we hit some of these inflection key points with round figures like $ 3,500 and $ 2,500 (£ 2,738 and £ 1,956), the psychological impact will weigh on more inexperienced traders ".
With the collapse of cryptocurrencies, the bitcoin share of the total capitalization of cryptocurrencies has increased, from the lows of 51% at the beginning of November to 53% today.
This domination is believed to highlight the constant interest of bitcoins for investors and cryptocurrency miners.
READ MORE: Did the bitcoin hit $ 15,000 by Christmas?
Jeff Sprecher, president of the New York Stock Exchange, believes that bitcoins and other cryptocurrencies are here to stay.
Mr Sprecher said: "Somehow bitcoin lived in a swamp and survived.
"There are thousands of other tokens that you could argue better, but the bitcoin continues to survive, thrive and attract attention.
"Often in finance, it's not about being the best – it's about being the broadest and the most commonly accepted and for whatever reason the bitcoin has become so."
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