Bitcoin Price (BTC) trades in a narrow range over the last week amid lack of support from market fundamentals. Although bulls have presented the rosy outlook for this year, the largest coin along with other digital currencies needs a push from market activities that should have a long-lasting impact on fundamentals.
Bitcoin has been making small sideways moves in the range of $9,500 to $8,900 level in the previous seven days. The coin trades around $9,000 today, down from $9,700 mark it hit during the latest bull-run.
In fact, the entire cryptocurrency sphere lost their momentum over the last week. The total market capitalization is hovering around $425 billion during the previous week, shy from past month high of $432 billion.
Warren Buffett’s unenthusiastic comments have provided support to bears in hindering the bull-run that many investors thought would push Bitcoin price above $10K mark. Buffett said Bitcoin is not investing, it’s gambling. The all-time best stock picker criticizes digital currencies due to lack of support from fair value.
Bears Say Bull Run Ends
Bears see limited upside potential in bitcoin price in the days to come. Vinay Sharma, Senior Trader at ayondo markets said, “the buzz around cryptocurrencies seems to be dissipating.”
Following Warren Buffet comments, analysts have again started raising questions over the digital currencies potential to work as the medium of exchange.
“Cryptocurrencies aren’t really currencies at all. With volatility so high they become assets that traders and investors can speculate on and this will continue to be true in the long term,” Vinay Sharma added.
The significant level of price volatility in bitcoin and other digital currencies makes it hard for global markets to accept them as the medium of exchange. Cryptocurrencies have the potential to make or wipe off billions of dollars in few hours alone. However, on the other hand, bulls expect regulators increasing role in cryptocurrency space will kill the price volatility.