Bitcoin continues its volatile recovery since May’s slump
By Rob Griffin
06:32, 25 August 2021
Bitcoin’s gradual recovery since its May slump is continuing with the price according to CoinDesk hovering around the $48,000 mark on Wednesday morning in London.
The cryptocurrency has been volatile this year. After soaring to more than $60,000 in April, it plummeted the following month and was below $30,000 by late July.
But the falls, partly triggered by Tesla entrepreneur Elon Musk’s decision not to accept bitcoin as payment, have started to reverse in recent weeks.
Hopes of a resurgence
There are also hopes that bitcoin will continue pushing up to record highs, according to Crypto Parrot, a cryptocurrency trading simulator.
Data from the platform suggests 65% of 55 crypto hedge funds who participated in a survey remain bullish, predicting bitcoin will trade between $50,000 and $100,000 by the end of 2021.
A further 21% believe the asset will go even higher, trading in the $100,000 to $150,000 price range over the same period.
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Negative regulatory news
Crypto Parrot also suggests a “possible influx of institutional capital” may help support bitcoin’s price over the coming months.
However, it also warned that the price projection might be hampered by the unclear regulatory outlook around the world.
“Bitcoin’s rally for the year was halted mainly due to an increased crackdown in China,” said Crypto Parrot. “Most jurisdictions have unclear cryptocurrency regulations, and negative legislation for the sector will potentially impact the asset.”
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