Market Securities Dubai futures exec: the fall of Bitcoin may continue to $2,800
Bitcoin would be able to fall even further downwards to $2,800 at the end of the year, as the dynamics strikingly resembles the collapse after the Mt Gox disaster, states Paul Day, head of futures and options department in Market Securities Dubai.
The reason why is this repeating again - as Mr. Day says, different generations of traders are experiencing the same process of initial overestimation of Bitcoin, then a large disappointment in the same asset.
As one can clearly see from the statements, it is as if the Mt Gox collapse itself has not been the fundamental reason of the fall in 2011. Instead, Paul Day offers another view: the fall would have happened anyway due to the traders’ predictably irrational behavior.
When looking at the present-day motion, one can notice that today the biggest cryptocurrency in the world has passed the barrier of $7500, but the press notes that it would be imprudent to talk about the trend reversal just because Bitcoin is in a better shape for several hours.
The introduction of a corporate or a state-backed cryptocurrency could seriously reshape the crypto market in the future — in this scenario, Bitcoin falling towards $1000 or even lower values cannot be fully excluded.
Image: Mike Blake / Reuters
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