Cryptocurrency (illustrative)
Cryptocurrency (illustrative)iStock

If the current cryptocurrency platform had to be scrutinized right now then the future of Bitcoin would be quite bleak. But as we all well know the markets are very unpredictable and what may be seen as a negative today, can just as quickly turn around and yield major profits tomorrow. This proved true for BTC this month when it appeared as though all was lost. The intervention of the bulls by stepping in and purchasing the dip, allowed for the crypto to receive a new lease on life. This kind of intervention is what makes the markets as volatile as they are.

The Markets Perspective

Irrespective of the views that many financial advisors and analysts have, the cryptocurrency platform is one that draws several investors and has resulted in many traders becoming very wealthy over the years. The negatives that pop up periodically seem to have no bearing on investors as they will continue trading, no matter what. In early January, when BTC coin climbed to a high of $42 000 during a rally where traders deposited into the crypto platform, the exuberance of the market caused BTC to sink to $33,412.72 as the traders continuously cashed in on profits. By the following morning, the crypto had experienced losses of around 7.8%, as the momentum of the latest rally slowed down.

What does this mean for Bitcoin?

If this downslide continues the future for BTC is a cause for concern for the crypto. The reason for this is that with it trading at $33 000, the token can be at risk as this is way below what a profitable level should be. It is because of this, that some investors are jumping ship and looking to invest on other platforms, this move was further prompted by financial advisors who warned that the crypto market was unstable. The current situation the crypto market is being likened to is the “internet stock bubble” which happened in 1990. There is mounting concern around the coin being used for illegal activities and as such, analysts have advised that governments should not permit cryptocurrency trading.

Cryptocurrency trading in other Countries

BTC's effective trading over the past few months has shed the spotlight on many other cryptocurrencies and motivated more investors to spread their wings and pursue similar investment vehicles. One such market is the Chinese yuan coin, the government backed yuan pay group. It has attracted a huge amount of interest from traders across the globe. President Xi Jinping was reported to have said that the release of the Chinese coin, is an important element in innovation and industrial transformation in the country. With the e-Yuan option as an alternative, it will mean that the Chinese government will be in a position to clear its bad debt issues.

As the cryptocurrency market grows, traders will continue to benefit and accrue large profits. Although BTC is in some difficulty right now, it seems that the negative input from financial advisors and analysts, will have no bearing and that it is still business as usual on this front.