BITCOIN saw a dramatic crash in prices last week as the value plummeted to an overnight low of around $8,000 today as Lloyd’s bank announced a ban on buying NTC with credit cards. But will Bitcoin and cryptocurrencies go back up in the future?
Bitcoin is currently down at $7,940 on the day so far after UK high-street bank Lloyds banned all cryptocurrency payments on its credit cards.
The ban extends to other household names in the banking giant’s credit card family including Bank of Scotland, Halifax and MBNA.
Wallet holders would have been hoping for a better start to the week but news of another mainstream finance firm being spooked by price volatility and regulatory threats means that other credit cards retailers around the world will be studying the fallout from Lloyds’ ban.
However, the volatility of the cryptocurrency market could mean BTC may crash further or even soar past the highs of the $20,000 seen in December.
Will Bitcoin go back up?
The financial consultancy deVere group predicts demand cryptocurrencies will “skyrocket” in the next 12 months.
Bitcoin, the group claim, could gain by 50 to 60 percent, and will remain highly volatile as it comes under “increasing pressure” from ethereum and other cryptocurrencies.
Nigel Green, CEO of deVere Group said: “Bitcoin – the world’s highest profile and largest by market-cap cryptocurrency – slumped by 30 per cent last week. There’s increasing scrutiny of the market by governments around the world, plus enhanced regulation.
“However, demand for cryptocurrencies is set to sky rocket in 2018 as more people get to know about them and use them, and as the interest of governments and businesses, and more regulation, demonstrate how the market is maturing and becoming ever-more mainstream.”
Oliver Isaacs, a cryptocurrency investor and influencer, believes the technology behind bitcoin could be the currency’s saving grace.
And he believes that while there may be a current dip in value, the currency will recover over time.
He told Express.co.uk: “The crypto-markets are extremely volatile and as an investor, you often have to look beyond the initial panic of a large price drop, not let emotions get in the way and look at the long-term likelihood of a positive return.
“Bitcoin, Bitcoin cash, Ethereum, and Ripple are some of the most well-known and talked about cryptocurrencies with largest market caps.
“While their short-term value fluctuates depending on market news, the underlying technology – blockchain will survive and prosper, and I am very confident in the tech.
Why is Bitcoin falling?
Bitcoin has fallen by more than 56 percent since the turn of the year, after peaking at nearly $20,000 in December 2017.
CoinMarketCap price charts show that bitcoin has been falling for weeks, though this latest crash has been blamed on mounting confusion surrounding the Indian Government’s stance on cryptocurrencies.
Yesterday, the Finance Minister Arun Jaitley spooked investors when he announced plans to “eliminate” the use of digital currencies for payment purposes.