[ad_1]
Bitcoin Foundation President Brock Pierce explains why cryptocurrency is becoming more popular and valuable.
Bitcoin plummeted on Thursday as its price came an impressive distance from its all-time high.
Bitcoin’s price was trading at $ 17,185, down $ 794, or 4.42%, by 7:15 am ET. The cryptocurrency hit an overnight low of $ 16,581.20.
Thursday’s selloff comes after the cryptocurrency hit a high of nearly $ 19,391 during the previous session, just 0.54% below its closing high of 19,497.
“Volatility is really critical when it comes to bitcoin,” said Mati Greenspan, founder of Quantum Economics, a Tel Aviv-based project to help people understand financial markets. “These sorts of sizable corrections have occurred quite frequently in all of his major bull runs. It’s the way markets shake traders with weak hands and / or excessive leverage. “
BITCOIN NO GAME FOR GOLD IN THE WORLD OF CORONAVIRUS
Bitcoin, the largest cryptocurrency by market cap with over $ 321 billion, had a strong 2020, gaining 160% through Wednesday.
The price of the cryptocurrency has benefited, along with other risk assets, from the monetary and fiscal stimulus that has been deployed around the world to combat the economic damage caused by blockades aimed at slowing the spread of COVID-19.
“We remain bullish as ever and still feel that a new all-time high is possible before Christmas,” said Greenspan.
BITCOIN RALLY CATCH WALL STREET, BEWARE OF HOLLYWOOD
The allure of rising bitcoin prices has attracted the attention of Hollywood stars and former Wall Street skeptical investors.
Billionaire investor Stanley Druckenmiller earlier this month told CNBC that he bought bitcoin for its potential as a “store of value”.
Also part of the bitcoin frenzy was “Game of Thrones” star Maisie Williams, who took Twitter for her investment advice. She bought the cryptocurrency despite multiple respondents telling her not to.
GET BUSINESS FOX ON THE GO BY CLICKING HERE
While bitcoin appears to be gaining popularity among the masses, there are still many skeptics, including Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund with $ 98.9 billion in assets.
He recently claimed that cryptocurrency’s volatility means that it is not a store of value and that it has little correlation with asset prices, meaning that owning it “doesn’t protect” purchasing power, among other things.
