Is the market ready for Bitcoin? | City & Business | Finance
[ad_1]
Recent graphs show that BTC had started to rebound this week, rallying to $47,465 (approximately £36,125) by March 29 from $37,849 (approximately £28,806) on March 13. The growth is short of impressive, as the coin remains stuck in its rut. The last 24 hours saw Bitcoin, now at $45,731.08 (approximately £34,805), drop 3.08 percent, putting it firmly below its $48,000 (approximately £36,532) resistance.
Is the market ready for Bitcoin?
Analysts have warned that to hit its target of $50,966 (£38,790) and start climbing back to last year’s highs, it will need to tread water.
Coinbase recommended it stay above $45,000 (approximately £34,249) to meet this “upside target”.
Others have drawn on waning confidence in new cryptocurrency products such as the much anticipated Bitcoin-backed bonds.
READ MORE: HMRC ‘cracking down’ on crypto: How does it affect tax?
Last week, El Salvador – led by controversial Bitcoin backing president Nayib Bukele – postponed plans to launch a $1 billion (approximately £761,120,000) bond of its own.
His country became the first to adopt Bitcoin as legal tender in 2021 and had intended to use its bond to fuel a low-tax city.
The recent movement has led experts to suggest the world isn’t ready for cryptocurrency products yet.
Finance minister Alejandro Zelaya blamed an unfavourable market, stating it was “not the time” to adopt the bond.
Reuters reported the minister had said the correct timing for launching these policies would fall roughly halfway through the year.
The so-called “volcano bonds” were highly anticipated in the Bitcoin world, as El Salvador was planning to sell $1 billion’s worth in 2022.
Mr Zelaya said: “In May and June sometimes you can, but the market variables get different.
“After September, it is difficult to raise, unless you are previously funded, as in the case of Bitcoin bond.”
DON’T MISS
But he highlighted the recent issue with the bonds as an issue unique to El Salvador.
Mr Saylor said that, while there was “a lot of talk” about it, the bond’s intended purpose let it down.
He said: “That’s a hybrid sovereign debt instrument as opposed to a pure Bitcoin-treasury play.
“That has its own credit risk and has nothing to do with the Bitcoin risk itself entirely.”
[ad_2]
Source link
