New York: Bitcoin prices have stabilised around the $23,000 to $24,000 level after plunging below $20,000 in June, media reports said.
The prices of ethereum and other leading digital currencies have also rallied in the past two months, leading to hopes that this nascent market may have reached its bottom, CNN reported.
But the optimism could be premature, and fleeting. Companies with direct ties to the crypto landscape continue to struggle.
Coinbase reported a loss for the second quarter after the closing bell on Tuesday. This follows Monday’s revenue warning from Nvidia, whose graphics cards are a key component in many bitcoin mining rigs, CNN reported.
With all this in mind, some experts think that bitcoin may be stuck in a narrow range for the foreseeable future.
Bitcoin bulls point out that a recent deal between Coinbase and money management giant BlackRock is a promising sign.
“The partnership between BlackRock and Coinbase is a massive deal,” said Jack Cameron, co-founder of Luna Market, a metaverse advertising and tech company, in an email.
Cameron added that since there “is still a stigma” associated with bitcoin, having more companies like BlackRock diving into the digital asset sector is good news, CNN reported.
“The more institutional money [that] joins the space, the better it is for all holders of crypto,” he wrote.
Bitcoin, despite the hype from proponents about it being digital gold, has turned out not to be an asset that performs well when inflation pressures are mounting and interest rates are spiking, CNN reported.