The price of bitcoin could go as low as $5,000 according to the CEO of GVA research LLC, David Garrity. Garrity spoke to Bloomberg about bitcoin’s popularity as well as the possibility that the cryptocurrency will soon be legitimized. He explained, “We need to see how these play out and I would argue that as things become more institutional, they perhaps become a little bit less suspect to the kind of frenzied enthusiasm that you might say has characterized the market to date.” Garrity advised that if the number of institutional investors of bitcoin increase, the possibility that bitcoin will become legitimate is likely.
Currently, Bitcoin is not regulated or controlled by any administrator. It is being used to purchase any item worldwide via electronic means. Its popularity has increased demand for it in 2017. Cryptocurrencies such as Ripple as well as ethereum benefited from the craze. However, coindesk.com reported that bitcoin fell almost 9 percent to £10,498.69 at 22:16 in London, while Ripple plummeted 12.80 percent to 1.20 in London at 22:16. Ethereum similarly fell 8.71 percent in London to $957.22 at 22:17. The plunge saw investors scramble to trade the relatively new cryptocurrency for gold. The purchase of gold coins increased at the Frankfurt-based trader CoinInvest.
Daniel Marburger, CoinInvest director, explained that “investors are still nervous” despite the recovery of bitcoin to $11,700 after going to as low as $10,000 the past week. He added, “Bitcoin could not make a clear counter-trend last week and gold is on a run at the moment with 7 per cent gains since its December lows.” He added, “Gold has a sustainable track record over decades and is an asset you actually hold in your hands. People are looking for something to touch rather than an investment where only the belief in it is the value,” he said. “Bitcoin has proven one time more than it is based on speculation.”
However, experts believe that cryptocurrency will eventually stabilize in the long term. London Block Exchange CEO, Benjamin Dives, has plans to create a direct exchange of sterling to bitcoin. He also believed that the volatile week bitcoin had was no cause for major concern. He explained, “[Some investors] may not be comfortable with the markets moving [downwards] and so are ‘cashing out’ to invest in traditionally stable assets, such as gold.” Dives added, “These people are likely new to cryptocurrency exposure or, as is standard in the investment industry, were just ensuring profits in the short term. The result for cryptocurrencies is a dip in the market, which is natural and healthy.” He states that the seemingly unpredictable exchanges were proof of the solid value of cryptocurrencies. “As the market matures, we can be sure of more stability in the future and that is when these investors will be looking for a re-entry point. Unfortunately for them, their transition to gold may cause them to miss out on the gold rush,” he concluded. Just last year, the value of a bitcoin was pegged at £900. Numerous economists are still wary of the worth of cryptocurrencies.