Bitcoin price news: ‘Sentiment remains bullish’ for ‘king of crypto’ BTC and ETH bull run

Bitcoin: Expert discusses recent drop in cryptocurrency value

Bitcoin prices peaked above £27,100 ($37,000) earlier today (January 20) after a recent downturn in the market. BTC is down more than $3,660 ($5,000) after it shot past ($40,000) on January 8 but market analysts believe the crypto is still showing signs of positive movement. As of 4.50pm on Wednesday, the token is trading for £25,261.66 ($34,489.50), according to Coindesk data.

The markets have also been good for the world’s second-biggest cryptocurrency, Etheruem.

The virtual token doubled up in value in less than a month, shooting past £1,000 ($1,430) on Tuesday.

The latest Coindesk data at 4.53pm shows ETH trading at $953.92 ($1,302.38).

The bounceback marks an incredible run for the token, which was trading below £585 ($800) when the month began.

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According to Paolo Ardoino, CTO of Bitfinex, there is now potential for Ethereum to go from strength to strength.

He said: “Ethereum has today reached a new all-time high. The price of Ethereum is going up in a resurgent decentralized finance (Defi) space.

“While the explosion of projects in Defi has caused growing pains for Ethereum, layering solutions are in the works that are helping the network to scale.

“The launch of Tether tokens (USDt) on such solutions, as a valuable and trusted source of liquidity, will help power Ethereum towards its full potential.”

ETH hit an all-time high in 2018 when it peaked at £1,054 ($1,439.1) but crashed in the months that followed.

At its lowest, the token traded around the £73.24 ($100) mark.

Mr Ardoino thinks there is also room for the bitcoin to join in on the crypto gold rush.

He said: “Sentiment around bitcoin remains overwhelmingly bullish.

“The king of crypto is the base layer for an emerging alternative financial system.

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“Bitcoin is providing a solid foundation for a staggering array of projects, some of which will fundamentally change the nature of money by the end of the decade.

“Those celebrating the rise of competing chains in a rampant bull crypto market should do well to remember that they owe everything to bitcoin.”

However, there is enough uncertainty in the market for financial institutions to warn against investing in the flagship token.

JPMorgan analysts warned this week bitcoin stands to lose big time if it does not break the £29,297 ($40,000) barrier soon.

The analysts said investors might look to cash out and “momentum signals will naturally decay from here up till the end of March”.

Money-saving expert Martin Lewis has also warned against the gamble that is putting money into bitcoin.

As a crypto, BTC is meant to act as a currency, but many look at it as an option for their investment portfolio.

Mr Lewis said: “The thing about investing – and Bitcoin is an investment – is that prices go up and prices go down.

“With Bitcoin, they go up massively and they go down massively.”

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