Bitcoin Price Will Bounce Back Despite Recent Slump: Trader
The world of cryptocurrency is passing through a harsh slump currently and needless to say; it has been a question in everyone’s mind as to where the future of bitcoin is going. The fall has been the gigantic fall of the year where bitcoin was recovering from the lowest trading price of the year. Now, the market has declined more than 15% in the last two days.
The current price of bitcoin revolves near to $6,400 BTC which is considered to be the most fatal and challenging point of the cryptocurrency price rate. However, the cryptocurrency trader Brian Stutland from CME believes that the price of bitcoin will surge back up to $7,250 in a short period. The $7,200 trading mark was what BTC amounted to before it suffered the crash. Even though the chances of seeing a trademark at this price are pretty minimal, the trader explains the reason behind this observation.
The Rise of Bitcoin
Brian Stutland spoke to CNBC’S Futures Now and shared the reason behind the future assumptions and the current price of bitcoin suffering the downward trend. He explained that it might be in September when the price of bitcoin slurps back up to $7,250 being the world’s largest cryptocurrency.
On the question about buying it, he said that he is looking up to the September futures contract and as a consequence, he will be willing to buy bitcoin at this point. The current level is $6,450, and the futures contract of September might trade at $7,250 which brings the CBOE contract to might stop out at $5,950.
The decline in the price of bitcoin was also as a result of reports which stated that Goldman Sachs might be pulling out on their plans at providing a bitcoin trading desk. However, instantly after the news circulated, the CFO of the institutional bank present at the TechCrunch event rejected any such false reports and reported them to be “fake news.” The CFO said that they are not planning on pulling out of the established plan anytime soon, which also disregarded any of its association with the decline in the price of bitcoin.
It was the day which saw more than $300 BTC decline in the time span of 10 minutes whereas the price of Ethereum jumped up by $12 percent. Even so, Stutland made a case in point where he believed that bitcoin doesn’t need a trading desk to keep the rates up or stay efficient. He further explained to this statement by remarking ignorance towards news of any bank or the people associated with the firm to be in charge of the ongoing trading price of the cryptocurrency.
He believes that the reason behind the evolution and manufacturing of bitcoin is to execute free from bank sheets and similarly processed deposits. The traders of bitcoin like him and the investors don’t need them, and as a result of his BTC forecast, he is looking into the possibilities for bitcoin to move back up and higher than before by the end of September.
The Volatility Contract
Stutland says that the cryptocurrency market comes with volatility which is the major reason for scaring away the investors. As a result, he would rather prefer seeing a volatility contract to make people and investors more comfortable with bitcoin trading and undergoing big moves not to let them back away. Also not to forget, the price of bitcoin reached the all-time high mark in December 2017 and January 2018 so there is still hope for it to continue the trend but it might take a year or so for that to happen.
But in the meanwhile, he believes that there will be more instability and volatility in the market which might urge a lot of altcoins to find their way out of the market. But the leading currencies Bitcoin, Ethereum and others are here to stay. So, before visualizing a recovering market that finds a way for leading currencies to find their way back up, the world will suffer shake-ups in the cryptocurrency market in the meantime.
We have found ourselves agreeing with the future observations made by the cryptocurrency trader. What about you? Do you think the price of bitcoin will reach impressive heights by the end of the month? Let us know in the comments.