Bitcoin withdrew after approaching $ 20,000 on Tuesday amid suspicion over the cryptocurrency’s intense rally.
The world’s largest digital asset fell for a second day on Wednesday, falling 1.2% to $ 18,820 from 7:10 am in Hong Kong. It had reached an intraday record of $ 19,914.33 in the previous session. In an interview with Bloomberg Television, Gary Cohn, former economic head of President Donald Trump, said the ticket “lacks some of the fundamental integrity of a real market” and could ultimately fail.
“Part of the integrity of a system is knowing who owns it and knowing who owns it and knowing why it is being transferred,” said Cohn, former head of Goldman Sachs Group Inc. “Bitcoin’s system today has no transparency to it. So many people question, why would you need a system that has no audit trail. ”
Bitcoin ‘Integrity’ Defaults Can Lead to Failure, Says Gary Cohn
Bloomberg’s Galaxy Crypto Index fell 2.6% on Tuesday.
Marcus Swanepoel, chief executive officer of crypto exchange in London, Luno, said Bitcoin will likely enter the $ 20,000 to $ 25,000 range before a significant sale. Then “it is likely that we would see a 20% to 30% disadvantage. This is a predictable pattern and there is no reason not to expect it. ”
Worth less than $ 1 back in 2010 when it was touted as a currency for purchases, Bitcoin has gathered bidders who argue that its tightly controlled supply and wider investor base show it has become a store of value. Critics say, however, that this year’s 160% rally is a bubble that cannot be supported by claims that digital assets should diversify portfolios and take flows of gold. On Monday, the ticket briefly surpassed its high set three years ago.
“Just as we saw in that earlier timeframe when we reached close to $ 20,000, it doesn’t take much for that exuberance to diminish,” said Keith Buchanan, portfolio manager at GLOBALT Investments. “Considering how it has moved here recently, given how the rhetoric has moved to ‘one-sided’ instead of debate, it takes you back to that time when there was a lot of risk that came home to roost , and when it did, the price action was violent. ”
The ticket hit a previous high of $ 19,511 in December 2017 amid widespread rejoicing, only to lose 70% in the following year.
Bitcoin’s recent rally was “likely as a result of large institutional investors joining the bandwagon and buying a share of BTC’s limited supply in the midst of a bull run,” said Gunnar Jaerv, chief operating officer of Hong Kong’s first Digital Trust, Hong Kong custodian.
– With the help of Eddie Spence, Vildana Hajric, and Joanna Ossinger