Bitcoin bounced on Friday, though it ended the week nearly 6% lower.
The cryptocurrency had been under pressure earlier in the week on fears of regulatory clashes by the new Biden administration.
Bitcoin was on a standstill up to two weeks ago, peaking at $ 40,000 on January 7.
This is what experts are watching now.
Steve Weiss, CIO at Short Hills Capital Partners, is skeptical that bitcoin can make the jump to cash every day.
“I don’t believe in bitcoin. There’s no way it’s going to be currency until the volatility stops. You can’t walk into a grocery store with $ 100 of bitcoin in your pocket and by the time you get to the cash register, it’s worth $ 50. … It’s going to keep going up and down, still a certain trade, but that’s what it is, call it what it is. “
Jason Gardner, CEO of payment platform Marqeta, explains how the company has partnered with Coinbase to streamline bitcoin-to-currency transactions.
“Bitcoin, when you reach $ 30,000, people want to start spending that in the point of sale and you can’t just spend cryptocurrencies at the point of sale. In our partnership with Coinbase they leverage our technology in time. To connect cryptocurrency to the point actually sell and convert that immediately to, say, fiat currency, which is clearly acceptable at the point of sale, and then they can authorize and deny those transactions based on the Coinbase user cryptocurrency balance so in a way, it’s create a pressure valve that releases so as we see the cost of bitcoin rise, then these consumers can spend at the point of sale. “
Tom Jessop, president of Fidelity Digital Assets, sees the downside as a natural break.
“We doubled from September to December – we went from $ 10,000 to $ 20,000 pretty quickly. And then in December to early January, we doubled again. So I think this is a step healthy of consolidation to the market I think, given you know. this market is still in its infancy, it is difficult to attribute price activity to specific factors. the blockchain is that you can actually look at the data and you can see where the money is moving, there have been some recent reports of the blockchain showing that there are some underlying bullish trends on the network where investors are moving a coin Typically, what you see is investors moving a coin on an exchange as a precursor to selling. So I think this is just some healthy profit and some consolidation. “
Terry Duffy, chairman and CEO of CME Group, explains how the market caters to the interest in cryptocurrency.
“It’s really interesting what’s happening with the crypto world in general. … Our contract is five bitcoins per one contract. So it’s a very large institutional contract. We did it on purpose. We didn’t want to attract The small retail participants into that new asset class, but we’re trading a couple billion dollars of notional a day, every day of our bitcoin contract. We’re seeing open interest and highest ever trade. There’s a lot of interest in this and so we announced that we are going to list the future of ethereum upcoming in February. We are excited by that. But again, we are going to take the approach we are going to It’s a walk before we run when it comes to these cryptocurrencies. We understand. some people still have some concerns out there and justifiably so. But at the same time we can’t neglect the fact that the world is looking for different ways to conduct their trade and crypto seems to be one of the ways they want it younger to do, so we want to make sure that we can pharmacy a risk management tool for those participants. “