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Bitcoin rallies after plunging to annual low

Bitcoin rebounded at the weekend and enjoyed strong gains as the bulls finally took charge of the market and sparked a recovery. The cryptocurrency hit its lowest point since November 2017 in the past week, dipping to $5,791 on Friday, and that sparked widespread predictions of its doom. But then it soared back up to $6,319 on Sunday, an increase of 9.1%. That has fuelled optimism among the bullish Bitcoin backers and some now claim the cryptocurrency is on the verge of another meteoric rise.

“If you understand the technology and you’re a bull, then now is a great time to be buying,” said cryptocurrency trader Ran Neu-Ner. “The blockchain is progressing and this thing isn't going away.” Fundstrat’s Robert Slyumer added: “I think if you’re a very short-term trader, we have a critical stop level at the $5,800-6,000, with a resistance level of $6,300-6,400. If it can rally through that, I think there’s a chance Bitcoin could start to turn.” Bitcoin then rallied through that in style, so optimism among the bulls is now on the rise.

Arthur Hayes, chief executive at Bitcoin exchange BitMex, said that Bitcoin could still hit $50,000 by the end of 2018. “I stand by the $50,000 prediction,” he said. I think something goes up to $20,000 in one year can have a correction down to $6,000. I think we can find a bottom in the $3,000 to $5,000 range, but we are one positive regulatory decision away, maybe an ETF approved by the SEC, to climbing through $20,000 and even to $50,000 by the end of 2018.”

That would be good news for anyone speculating on Bitcoin, and also for sports betting fans that use the cryptocurrency for wagering purposes, due to the anonymity, speed and efficiency it offers. But many are projecting gloomy times ahead for the popular cryptocurrency. Nobel laureate economist Robert Shiller said it was a bubble, a sentiment echoed by Apple co-founder Steve Wozniak. After the biggest correction in years, Spencer Bogart of Blockchain Capital declared there is more pain to come. It is extremely volatile, so investing in it definitely represents a risky move. Cybercurrencies are much frowned upon by the financial establishment and they face further regulatory crackdowns, so you should expect plenty more wild fluctuations going forwards.

However, using Bitcoin for sports betting continues to grow in popularity. Cloudbet, a sportsbook that only accepts Bitcoin, has gained a lot of publicity this month for pledging to accept wagers of up to 100BTC for the World Cup final. That is equivalent to more than $650,000 and the operator believes it is now offering higher limits than traditional books that accept fiat currencies like dollars and euros. It has also been offering to accept bets of up to 20BTC during the group stage and knockout stage of the tournament, and it has seen its business increase six-fold. Wagers have come in from 100 different countries, highlight Bitcoin’s global appeal.



“Crypto holders are looking to grow their coin stack and add even more excitement to the action,” said Mirio Mella, Cloudbet’s head of acquisition. “Drawing so many bets from all over the world ?demonstrates a global acceptance of bitcoin as a convenient and practical medium for betting. The World Cup has so far been a tremendous success for Cloudbet. We fully expect our 100BTC limits for the final to be taken advantage of.” If you are interested in getting involved, Cloudbet offers a 100% deposit bonus up to 5BTC, while many traditional sportsbooks have made Bitcoin central to their offerings, so you are not short of options in this burgeoning market.