Bitcoin rebounded on Friday but ended the week nearly 6% lower.
The cryptocurrency came under pressure earlier this week due to fears of official action by the new Biden government.
Bitcoin was in jeopardy until two weeks ago, trading over $ 40,000 on Jan. 7.
Here’s what experts are watching now.
Steve Weiss, CIO at Short Hills Capital Partners, is skeptical that Bitcoin can make the leap into everyday currency.
“I don’t believe in bitcoin. There’s no way it will be a currency until the volatility stops. You can’t go to a grocery store with $ 100 bitcoin in your pocket and until you get to the checkout it’s $ 50 worth … it will still go up and down, still be a specialty store, but that’s the way it is, call it what it is. “
Jason Gardner, CEO of payment platform Marqeta, explains how the company partnered with Coinbase to streamline Bitcoin-to-currency transactions.
“Bitcoin, when you hit $ 30,000, people want to start spending that at the point of sale, and you can’t just spend cryptocurrencies at the point of sale. In our partnership with Coinbase, they’re using our just-in-time Technology In order to really connect the cryptocurrency to the point of sale and immediately convert them into e.g. fiat currencies, which is obviously acceptable at the point of sale, they can authorize these transactions in a way based on the cryptocurrency balance of the Coinbase user and reject It creates a pressure valve that comes loose so that if the cost of Bitcoin increases, these consumers can spend it at the point of sale. “
Tom Jessop, President of Fidelity Digital Assets, sees the retreat as a natural break.
“We doubled from September to December – we went from $ 10,000 to $ 20,000 pretty quickly. And then we really doubled again from December to early January. I think this is a healthy period of consolidation for the market guess assuming you know this market is still in its infancy. It’s difficult to attribute price activity to specific factors. One interesting thing about the blockchain is that you can actually look at the data and see where the money is going. There have been some reports recently it has been shown that there are indeed some bullish trends on the network where investors are moving coins out of exchange. Typically, you see investors bringing coins into exchange as a forerunner of selling. I think this is just healthy profit taking and some consolidation. “
Terry Duffy, Chairman and CEO of CME Group, explains how the market is responding to interest in cryptocurrency.
“It’s fascinating what’s going on with the crypto world in general. … Our contract is five bitcoins per contract. So it’s an extremely large institutional contract. We did this on purpose. We didn’t want to get the small retailers to do so New asset class, but we are trading a few billion dollars in face values every day, every day of our bitcoin contract. We see record interest open and trade in it. There is great interest in it and that’s why we announced that we will be listing Ethereum futures, coming up in February. We’re excited about it. But we’ll be going back to the approach we will take before we run when it comes to these cryptocurrencies. We understand there are still some concerns from some people out there and about that Right. So, but at the same time we cannot neglect the fact that the world is looking for different ways to conduct its trade operate, and crypto seems to be one of the ways they want to do it, we want to make sure we o can offer a risk management tool to these participants. “
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