Having reached a historic record of $20,000 per coin in mid-December, bitcoin dramatically fell to a mere $6,000 in the subsequent two months, with financiers now enthusiastically debating the crypto-flagship’s fate.
In an interview with Sputnik, Veronika Dneprovskaya, a leading specialist in major broker Alpari’s investment department, has commented on today’s state of bitcoin, which many experts say looks like a “coma.”
According to her, the current bitcoin price is due to the fact that the world’s digital legislation as well as supply and demand are now still in the making. Separately, the rate is determined by mining complexity and network scalability, Dneprovskaya said.
“Bitcoin may grow in price in the long run, sometime in 2018, and it will be a result of international cryptoasset regulatory mechanisms being introduced, which will enhance public trust in cryptocurrencies at large,” the analyst said.
Investor trust will in its turn propel demand for the “digital gold.” Separately, a rise in the price of bitcoin may be driven by an increase in the complexity of the mining process due to a limited offer of the asset, Dneprovskaya stated. As of today, roughly 17 million bitcoins of the overall 21 million have been mined.
Speaking about altcoins, which is short for alternative coins, most of them, if analyzed in the medium and long term, echo the cryptomarket flagship’s price movement, the analyst pointed out.
“This is due to one and the same bitcoin code which underlies most of the cryptocurrencies. We don’t think the situation will dramatically change in the course of 2018,” Dneprovskaya rounded off.
According to Coinbase, a cryptocurrency exchange, bitcoin is down around seven percent from yesterday, at $8,155 per coin.