In December, Bitcoin was trading at $ 20,000. Since then prices have fallen and have now sunk by several thousand dollars from the top.
According to Coinmarketcap, one Bitcoin was trading for $ 7,481 on Friday night.
Bitcoin expert Torbjørn Bull Jenssen recently told the Norwegian news outlet E24 that the rise in price this autumn can be described as a bubble.
– In the autumn, one got a “hype” which caused the prices to go crazy. Media wrote a lot about Bitcoin, and new people threw money in the crypto market to join the show. Besides, active market manipulation has been demonstrated, “says Bull Jenssen.
– It was a bubble.
Now, however, the analyst says the market has been receiving good news and that the development in technology and regulation of Bitcoin has now really boosted.
– The market turned sharply, and the price fell for a long time with limited optimism. The ironic of this case is that the news has been quite positive, says Bull Jenssen.
This fall’s rise in prices gives good news now
Several major companies are now investigating how to best get into the crypto market.
For example, the airline Norwegian reported last month that they are going to establish a marketplace for cryptocurrencies, as well as the ability to pay the airline ticket with Bitcoin and other digital currencies.
The reason why good news is coming from the crypto industry is due to the extreme price increase this fall, Bull Jenssen believes.
“It is in the wake of a euphoric period that development has now gained momentum. As it got so much attention this fall, development is beginning to get started seriously now.
“It is therefore only after the price rise that such a price level we have seen before can be defenders.
The analyst indicates that the authorities now also are coming to the field.
“We see that financial supervision across the globe has begun to assess how to deal with cryptocurrencies, and the US authorities have been surprisingly positive.
Furthermore, Bull Jenssen points out that both the big bank Goldman Sachs and the financial giant Blackrock are now following the market closely.
“Those who have been optimistic have long been waiting for institutional and established players to enter the market. It’s happening now.
The chart shows the price of Bitcoin from one year ago to today.