Bitcoin To Decline Further? BTC Bubble to Burst or Rebound Again?

Recently, Bitcoin price (BTC/USD) touched the lowest levels, below $6,000, thus making us wonder what does the future hold for this digital currency.  Let’s have a look!

There was a time when Bitcoin created a furor in the market with the high returns that it offered, but now it seems the investor sentiments have dipped, thanks to the stringent government rules and regulations and security threats that this currency pose.

Why Bitcoin is under pressure?

Apart from the constant bans from various countries, there are various other reasons why did the Bitcoin market is under a pressure.

• Postponement of the decision by SEC– The postponement of its decision to approve Bitcoin ETF acted as a blow to the bulls who were betting high on this currency, and this created an undue pressure on Bitcoin.
• Security and manipulation- Though the optimists are still counting on the wider adoption of Bitcoin currency and its prices, but the regulators and many institutional investors are worried about the security and market manipulation that this currency can create.
• SEC undecided about VanEck– The bitcoin backed VanEck exchange traded fund has still not been approved by SEC. The decision will be likely to be taken on Sep 30.
• Negative statements- The skepticism among the regulators and their negative comments especially from the mouth of Federal Reserve Bank of Richmond president Thomas Barkin, has dented the hopes of the bitcoin enthusiasts. Here’s what he said

“Digital currency doesn’t have the level of protection that you would hope for in a currency.”

• Terror Funding- BTC and other cryptocurrencies have raised the concerns about money laundering and terror funding. The countries like India and South Korea, which are new to this market has suffered a lot from it, hence the investors call it a risky investment.

Future for Bitcoin?

Though we all know Bitcoin has plumbed to a new low and is on a roller coaster ride, still the optimism prevails. Here’s how we can say that

The US government has announced to accept donations in cryptocurrencies for its Presidential election, and this makes us believe in the power of digital currencies. Even the coffee industry like StarBucks is teaming up with the world’s biggest exchange operator to integrate digital currencies into its system. If that’s not enough, the government of India and RBI has created a panel to look into the cryptocurrency and is in a no mood of banning it.

In the end, we would like to conclude that the blood bath in this cryptocurrency continue to exist because the institutional investors and regulatory authorities are unsure about the security concerns also this cryptocurrency has given rise to illicit activities and needless to say the market watchers are still not ready to accept it as a currency, hence many economists’ call Bitcoin as a bubble. But we think cryptocurrencies with rider is the perfect solution for it, isn’t?