BENGALURU: After touching the annual high - over $31,500 level, on Thursday, the world’s largest cryptocurrency Bitcoin was consolidating at the $30,000 level on Friday. But experts say in the long-term, market participants still expect the price of Bitcoin to recover, as more financial institutions are pushing for Bitcoin financial instruments which might spark a bull run in the near future.
At the beginning of 2023, Bitcoin was trading below the $17,000 mark and it reached the $30,000 level recently. “Although the current short-term uncertainty in the crypto market exists, it may not alter the long-term outlook of investors,” said Edul Patel, CEO and Co-founder, Mudrex, a global crypto investment platform.
He added that despite the Federal Reserve pausing interest rate increase on June 14, Fed Chair Jerome Powell seems committed to reducing inflation by restarting rate hikes. “The market correction observed may be attributed to investors and traders anticipating potential interest rate hikes in the future. This anticipation has led them to consider the possibility of an impending recession,” he added.
At an event in Bengaluru on Friday, RBI Deputy Governor T Rabi Sankar said people trading crypto is not the concern but the unbacked cryptocurrencies and the product itself alongside its backers is the problem. He said stablecoins pegged to other currencies in emerging market economies pose several threats.
Meanwhile, crypto trading exchange Unocoin said it has completed Proof of Reserves (PoR) verification process. Proof of Reserves is a concept that assures users of the integrity and trustworthiness of cryptocurrency exchanges.