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The year 2018 saw the bitcoin peak at £ 15,000 ($ 19,562.85), but also touched lows of £ 4,600 ($ 6,001.50) on February 16th.
Bitcoin is now trading at £ 5,069.90 ($ 6,612.11) starting at 8 am, according to fool.co.uk.
The prediction for virtual currency suggests that the token will be volatile in the medium term, but could it return to its initial price of £ 0.77 ($ 1)?
The sentiment of an optimistic investor has driven for its recent increase in value, with investors enjoying a 10-year bull market that saw asset prices rise worldwide as a result of the financial collapse of the 2008.
The global economy is expected to grow by around 4% over the next two years, which will help drive asset prices even higher.
This could lead to increasingly bullish investors adopting risky investment approaches.
And this could have a positive impact on the price of bitcoins, with greater risk taking that helps its performance in the medium term.
However, the long-term prognosis for virtual currency remains questionable.
These fears can affect its performance, as well as causing the risk of collapsing the price in case of new regulations.
Furthermore, it seems unlikely to provide a realistic alternative to traditional currencies.
Therefore, its appeal as an investment remains low compared to other activities.
One of the key challenges for bitcoin investors is understanding the value of the token.
All assets are dependent on investor sentiment.
While FTSE shares have financial statements, financial statements and a track record of financial performance to provide guidance on how much their shares are worth, there is no comparative means to evaluate bitcoins.
Bitcoin has been described as a gambling game, rather than an investment by Nicky Morgan, president of the UK Treasury Committee.
"Bitcoin and other crypto-assets exist in the wild industry of crypto-activity.This unregulated industry leaves investors facing numerous risks," he said.
"Given the high price volatility, the vulnerability of hacker exchanges and the potential role of money laundering, the Treasury Committee strongly believes that regulation should be introduced".
Bitcoin has been described as a gambling game, rather than an investment by Nicky Morgan, president of the UK Treasury Committee.
"Bitcoin and other crypto-assets exist in the wild industry of crypto-activity.This unregulated industry leaves investors facing numerous risks," he said.
"Given the high price volatility, the vulnerability of hacker exchanges and the potential role of money laundering, the Treasury Committee strongly believes that regulation should be introduced".
