Bitcoin prices in the last 24 hours made spectacular gains and for one brief moment, it seemed like the price would surpass the $10,000 mark for the first time in months. The sideways markets have led many to believe that the first of the cryptocurrencies would lead the whole crypto space into oblivion as a failed technology.
There are several reasons why Bitcoin prices have hovered around $10,000 and they shall be considered below.
Firstly, the uncertainties as regards regulation for cryptocurrencies especially on Facebook’s Libra projects has led to hesitation for key investors who wanted to take a position on cryptocurrencies and blockchain technology.
From the word go, Libra has been a controversial project and it has drawn fire from the United States parliament as Capitol Hill has repeatedly aimed at the project. The recent Kee-Big-Big-Tech-Out-of-Finance-Act has already shown that the US Congress is willing to let everything else go so that Libra doesn’t see the light of day.
As such, Bitcoin prices and other prices of cryptocurrency tokens in the crypto space have been sideways reflecting the uncertainty that has surrounded the markets due to Libra.
Secondly, the apparent launch of Bakkt by Intercontinental Exchanges and Its failure to improve adoption by institutional investors last month has also contributed to the prices of Bitcoin being in the doldrums. This has led to institutional investors holding off from entering into the market with big gains and making sure that they hold liquid positions.
Thirdly, even though blockchain technology has gained some form of recognition., acceptance has been slow before now. The recent statements credited to the Chinese President Xi Jinping has lent credence to the fact that many nation-states are also studying the crypto space and trying to figure out how they can also be a part of it.
So, as to the question of Bitcoin prices remaining below $10,000, it is highly unlikely for that to occur on one condition: if the Chinese government begins to back the recent Presidential statements with state moves which are geared towards implementation of blockchain technology otherwise the situation is too close to call for now.