On Tuesday, the price of Bitcoin managed to recover from slumping to just over $30,000 on Monday at around $36,000 as crypto-currency uncertainty persisted.
On Tuesday, when the cryptocurrency sector recovered from Monday’s plunge, the Bitcoin price reclaimed back to nearly $36, 000, but uncertainty is still strong. Mark Cuban has warned that the latest surge is a “bubble” that may be ruinous.
Bitcoin fell to just over $30.000 on Sunday and Monday in a lucrative surge following the impressive rise in the currency, by as much as 20%. Crypto-confidence has also influenced market nerves and a higher currency.
However, on Monday evening and Tuesday morning bitcoin-profit.org price increased dramatically, climbing over 15% from Monday’s low, again hitting the mark of $36,000. Then at 4.23 AM ETit dropped marginally down to $35,715.
In just one week, the cryptocurrency rose by more than 13%, 92% within one month, and 340% over one year, after central banks had flooded markets with capital during the coronavirus.
The notable growth in the number of cryptocurrencies has drawn competition from every corner of the planet. Cuban warned yesterday on Twitter that the “cryptos trade” was “EXACTLY like the internet stock bubble” in the late 1990s, which was catastrophic to many businesses and investors.
However, he said that Bitcoin, Etheruem, and “a few others” were able to survive and to succeed, as Amazon and eBay had done two decades before.
On Tuesday morning Ethereum hit $1,111. Trading above the all-time peak of over $1,200 in early 2018, it rose by about 675% over the past year.
Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY. I think BTC, eth, a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting, and thrived, like AMZN, eBay, and Priceline. Many won’t – Mark Cuban claimed on Twitter.
Cuban admonished the trustworthy crypto evangelists who “try to justify whatever the pricing of the day is.”
“All the narratives about debasement, fiat, etc are just sales pitches. The biggest sales pitch is scarcity vs demand. That’s it,” he added.
But Investors and traders of Bitcoin believe it’s different this time and claims it’s unlikely to be a market collapse such as in 2018 which saw a price record reach around $19,900 in 8 weeks to fall to about $5,870.
Michael Hall, the co-founder of Nickel Digital Asset Management, claimed that the Bitcoin “is experiencing upside volatility which may correct sharply but tends to resolve reasonably quickly at higher levels as price discovery continues.
“We do not believe there has been any fundamental change in the outlook for Bitcoin which is now increasingly owned by longer-term investors, weighted towards Europe and North America, looking to buy and hold within multi-asset portfolios.”But, on the other hand, the UBS analysts took a vaguer view. They said in a note: “Given their high volatility and the size of their past drawdowns, cryptocurrencies might be attractive to speculative investors, but they are neither a suitable alternative to safe-haven assets nor do they necessarily contribute to portfolio diversification.”