Bitcoin continues to be volatile. The major cryptocurrency fell back in value shortly after its 13-month high. On Tuesday, according to data from the analysis company Coinmarketcap, a Bitcoin was worth around 12,350 dollars – the highest level since July 2019. After that, however, things went down significantly: On Wednesday afternoon, Bitcoin was down more than two percent at a good 11,870 dollars.
“In view of the overheated market situation, investors realize part of their profits,” commented analyst Timo Emden from Emden Research. “The question now arises whether the still manageable correction will turn into a crash.”
In the medium term, Emden believes that the rally could continue – albeit with increased volatility. “At the latest since the recapture of the five-digit price level, more and more institutional addresses should now take a look at the Bitcoin,” he explains. That could put the $ 13,000 mark within reach. What pleases institutional investors: In the corona crisis, Bitcoin has proven to be of great value. Since mid-March, the rate has risen almost uninterrupted from around $ 5,000.
James Butterfill, investment strategist at the crypto start-up Coinshare, is also optimistic. Bitcoin is now in a league of its own, he claims. “Bitcoin is increasingly establishing itself as a valuable investment opportunity and largely does not correlate with other asset classes,” says Butterfill. Between 2012 and 2019, the cryptocurrency outperformed other large asset classes in six out of eight years, including the MSCI World Index, dollars and gold.