The price of digital currency rose from $ 8,296 (£ 5,880) around noon yesterday to $ 7,561 (£ 5,623) at the time of writing.
The news comes as the price of Bitcoin could drop to a shocking low of $ 2,800 per token in a “precipitous drop” as the cryptocurrency’s closing price over the past 50 days is close to its moving average of 200 days.
Crypto expert Annie Massa has issued a stern warning that could push prices down even further if investors decide the cryptocurrency is becoming too volatile.
She said, “So an analyst said it could drop all the way to $ 2,800 which would still be a huge precipitous drop since it’s currently around $ 8,000 right now.
“So that would still be a very long way to go, but it depends on what you want to read in those signals, but there have been recent developments, tighter regulatory oversight in the crypto space. currency, for example, which frightened some investors. “
The Bloomberg analyst said that Bitcoin’s “death cross” is approaching and could mean the cryptocurrency is on the verge of falling even more than it has in recent weeks.
Bitcoin hit record highs of over $ 19,000 in December before plummeting.
Ms Massa said investors may have “gotten ahead of themselves” during the period of price hikes and ignored future regulations.
She added: “I think what we saw in December was that there was a lot of excitement around the cryptocurrency space and maybe some investors took some money out. advance and did not consider the regulatory review that might occur.
“Now you see what the SCC and CFT are getting a little bit more involved in regulating this space, I think that has kept some people on the sidelines or led to sales. “
Over the past month, Bitcoin prices have fallen 9.52%.