Bitcoin Volatility is an Essential Ingredient and Key Factor for BTC Price to See $50,000 USD
There are a lot of Bitcoin (BTC) skeptics out there, who put down the king coin because of its volatility. With a hike in the past few days (and a drop in the last 24hrs) Bitcoin has shown its high volatility.
However, Is this Volatile Nature of BTC such a Bad Thing?
On Wednesday, the 10th of July 2019, the price of Bitcoin spiked passed the $13,000 mark during Asian trading, which took Bitcoin (BTC) above the resistance of the previous 48hrs candlestick. Many BTC bears speculated a correction below $10,000, it, however, holds at around $11,500 at press time.
The Bitcoin (BTC) intraday low within the last 24 hours still rests just above $11,300 which confirms this volatile nature.
Possible Factors of Recent Bitcoin Volatility
The Cable News Network (CNN) has on many occasions questions what exactly causes this recent Bitcoin (BTC) high volatility.
Bitcoin has surged and dipped rapidly with about $4,000 within the last couple of weeks, which was the value of one Bitcoin about four months ago.
Naeem Aslam, the chief market analyst of ThinkMarkets FX, is of the belief that the move of BTC above the $10,000 mark last month was a strong sign to many retail BTC investors that the king coin was back!
The director of institutional trading at Coinsquare Capital Markets, Lennon Sweeting, stated that the rapid spike in BTC price caused many BTC investors to pump cash into the BTC market, causing a similar sharp dip. Sweeting added :
“There are some key players who hold a lot of bitcoin and can rattle the market”
Facebook's Libra, Possible Boost of BTC Awareness
The report further cited that Facebook's recent announcement to delve into the cryptosphere is one major possible factor of the recent Bitcoin (BTC) surge, Aslam, in addition, said that it will be no surprise if Amazon does the same by announcing its own offering soon.
Although Facebook's Libra is quite the opposite of Bitcoin (BTC), it will definitely increase the awareness of Bitcoin as well as other digital assets and their applications.
Naeem Aslam, an ardent Bitcoin bull still believes that the digital asset will top at about the $20,000 mark soon and rise to $50,000 over the next couple of years.
Likely Imminent SEC Approval
He backs this rationale with the fact that institutional investors are already adding Bitcoin (BTC) to their portfolios and it's only a matter of time before the Securities and Exchange Commission (SEC) approves a BTC Exchange-traded FUND (ETF), which will then cause a massive Bitcoin rally.
Bitcoin Volatility, The Main Attraction
According to the CEO of BitMEX, Arthur Hayes, the volatility of Bitcoin that is the main attraction of many traders, who seek very high octane trades, because as the value of BTC rises, the volatility will likely increase. He said :
“if you want to avoid the volatility, you should trade the S&P 500”