Bitcoin Market Continues to be Volatile

Martin Green

Monday, February 26, 2018 4:11 PM UTC

Monday, Feb. 26, 2018 4:11 PM UTC

Bitcoin enjoyed a sudden spike and surged back past the $10,000 mark Monday morning amid general gains in the cryptocurrency market. It marked a 7.5% gain in Bitcoin’s value over the past 24 hours and meant a volatile week ended on a positive note for investors. 

Bitcoin enjoyed a spike and surged back past the $10,000 mark Monday morning amid general gains in the cryptocurrency market. It marked a 7.5% gain in Bitcoin’s value over the past 24 hours and meant a volatile week ended on a positive note for investors. It reached a weekly high of $11,768.58 on February, almost double its value of $5,920 at the start of the month. But it then quickly saw its value slashed as it struggles to recover from a mass sell-off in January. The monthly chart for Bitcoin’s value remains an aggressive zigzag, and Monday’s gains could quickly be wiped out due to ongoing volatility.

It is such a new and novel currency that it fluctuates massively when an influential tech giant or lawmaker makes a positive or negative comment about it. In the past week, PayPal’s chief financial officer, John Rainey, was positive about the role Bitcoin can play in future transactions. But he added: “Given the volatility of bitcoin right now, it’s not a reliable currency for transactions because if you’re a merchant and you have a 10 percent profit margin, and you accept Bitcoin, and the very next day Bitcoin drops 15 percent, you are now underwater on that transaction.”

That is the crux of the matter for sports bettors, because you can quickly be underwater on your winnings if you are wagering in Bitcoin. The recommendation remains to take advantage of the speed, safety and anonymity Bitcoin offers when placing bets, but quickly withdraw any winnings and covert them back into dollars or other fiat currencies to avoid the potential of your margins being destroyed.

Over in the Czech Republic, which counts the koruna as its national currency, Bitcoin has outstripped the dollar and the euro as the most popular currency for investors to purchase. In the UK, Treasury select committee chairman Nicky Morgan MP is leading an investigation into cryptocurrency, the technology underpinning it and how consumers can be protected from losing their life savings.

“People are becoming increasingly aware of cryptocurrencies such as Bitcoin, but they may not be aware that they are currently unregulated in the UK, and that there is no protection for individual investors,” he said. “The Treasury Committee will look at the potential risks that digital currencies could generate for consumers, businesses, and governments, including those relating to volatility, money laundering, and cyber-crime. We will also examine the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace traditional means of payment.”

Because Bitcoin transcends national boundaries and enjoys a status as a global currency, any comments like this can cause the price to shift. Several celebrities, rappers and entrepreneurs continue to invest in Bitcoin, but Tesla founder Elon Musk is not one of them:

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Not sure. I let @jack know, but it’s still going. I literally own zero cryptocurrency, apart from .25 BTC that a friend sent me many years ago.

— Elon Musk (@elonmusk) February 22, 2018

Despite his ambivalence and the volatility, hordes of people continue to show an interest in Bitcoin, and it pervades the collective consciousness more with every passing week. It is also worth bearing in mind that Bitcoin has some pretty serious rivals in the cryptocurrency stakes nowadays. Experts are predicting that Ethereum, the second largest cryptocurrency, will eventually outstrip Bitcoin by doubling in value. This currency’s Blockchain can handle nearly three times as many transactions per second as Bitcoin’s, and they are a lot cheaper. Nano and Qtum are also being tipped to double in value in 2018 after enjoying strong early success after launch. The latter has launched recent partnerships with 360 Finance and Boafend BokoCloud that are allowing it to flourish, so it might be worth shopping around before investing in Bitcoin.

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