Bitcoin value took its third dip of the week when a Sweden central bank governor warned of the eventual collapse of its market. Bitcoin price tumbled to $45,000 with a 3.12 percent downward trend afterward.
The biggest cryptocurrency in the world had a very rough week. According to CoinDesk graphs, Bitcoin started with a $49,851 trading value on Sunday. Investors had their hopes up when Bitcoin rose to $51,676 by Monday and peaked at $52,722 by Tuesday. But the gains tumbled to $46,666 on Wednesday, barely recovering to $47,014 on Thursday.
As of Friday, Bitcoin dropped to $45,020.
The steep decline between Tuesday and Wednesday caused investors to lose thousands in the market. With the current Bitcoin performance, the risk of dropping even further down the market is very high.
Bitcoin Price Prediction: Experts Warns Potential Collapse of Market
On Friday, Riksbank Governor Stefan Ingves questioned the stability of Bitcoin markets.
At a banking conference in Stockholm, he said, "Private money usually collapses sooner or later. And sure, you can get rich by trading in bitcoin, but it's comparable to trading in stamps," per Bloomberg.
To emphasize, the governor associated Bitcoins as tokens. Investors could collect them by saving Bitcoins or spend them by trading in the market. The critical factor to note is Bitcoin's market values, which were implied to be highly dependent on fan support. Consequently, losing support or acknowledgment of Bitcoin could render it useless tokens.
Ingves also warned that Bitcoin and other cryptocurrencies would unlikely escape regulatory oversight with its growing popularity. Government restrictions and tax implementation could directly affect market value.
Another senior market strategist from Exness, Wael Makarem, told Yahoo! Finance, "investors are cautious about the current fluctuations in bitcoin and ethereum, especially as these benchmarks failed to trim earlier losses, which is usually considered a sign of weakness in the crypto market."
He also said European officials have begun implementing new regulations, anti-money laundering rules, and tax reporting requirements for Bitcoin. Such restrictive laws and regulations would directly limit the use or adaptation of cryptocurrencies.
Cryptocurrency regulations also have their advantages. It brings stability and protection to industries that try to adopt the digital coin as a payment option. However, it also resulted in lousy trading performance for short-term investors.
BTC and Other Cryptocurrency Markets
Other cryptocurrency markets will possibly be affected by Bitcoin's unfortunate development.
Ethereum was recently reported with optimistic price predictions for 2022 up to 2024. However, it also emphasized that success would greatly depend on Bitcoin markets. According to CoinDesk, Ethereum also dropped to $3.240 Friday, on the same timeframe that Bitcoin lost its market cap.
Meanwhile, the third biggest cryptocurrency, Cardano, was predicted to reach new highs sometime soon, according to Yahoo! Finance. Its trade value might even reach $4 before 2022. Nigel Green, CEO of financial advisory firm deVere Group, said: "its price has increased by around 1668% during the year so far. This impressive momentum is set to gain further pace as we move towards the end of the year."
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