You may be breaking open bottles of champagne as Bitcoin’s parabolic rise continues but you may want to check the cryptocurrency’s history before you plan your retirement. It is easy to get swept away in the latest rise of the currency which at the time of writing 1 Bitcoin is worth $8,745.98 USD. A few days ago it was worth over $9,000 USD. Caution, however, should be exercised.
As such you may want to consider short options going forward. That said there is a sea change in the air now that the biggest players on the planet from Wall Street are getting involved. If you want to get involved check out BestBitcoinBroker.net before making an investment.
Big Players
Recently, the JPMorgan Chase big cheese, Jamie Dimon who once described Bitcoin as a fraud and would be crushed by world governments announced the big player was entering the market with a release of its own cryptocurrency, JPM Coin.
Unlike Bitcoin, JPM Coin will be linked to a central banking system. The move seems to be to facilitate faster transactions facilitated by a Blockchain system rather than to create a new finance model. One JPM Coin equals $1 USD.
Ed Yardeni, former chief economist of Deutsche Bank and Yardeni Research said, “JPMorgan and the other big banks have no choice but to go down this road
“If JPMorgan doesn’t do it, someone else will.”
Another big player to enter the cryptocurrency gold rush and a Wall Street big name is Fidelity. According to a recent tweet from Justin Moon:
“BTW Fidelity has a room full of bitcoin miners at their office. Cypherpunk AF!”
Ari Paul backed this up with his tweet, “Fidelity’s cryptocurrency culture is bonkers. Literally hundreds of passionate advocates at every level of seniority at the firm. They have more people working on crypto than the 5 biggest crypto funds combined.”
The fact that financial giants and mainstream players are entering the world of cryptocurrency is a strong indicator that Bitcoin is now seen as significant rather than an odd financial glitch with legitimacy.
Right now Hype or Real
Despite the incursions into cryptocurrency from the big financial powerhouses caution is still advised. The one thing Bitcoin has never had is stability and this has been proven since day one.
Bitcoin Analyst Nicholas Merten (aka DataDash on YouTube) warned that the currency price would begin to fall, though he edged his bets a little:
“I think there’s a very good chance that over a longer-term decline, we could still come back down to this line of support [at $4,200]. It’s not something that would happen overnight.”
Nonetheless, with the price soaring, you’d be brave to buy long at this time. Where will the currency go from here? The smart money is a drop and given that only a handful of transactions were responsible for the current Bull run, short is something that many who are pumped at Bitcoin’s performance, are going to have to come to terms with the reality that the price must drop.
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