Capital managers see high volatility of the first cryptocurrency as a threat

18.05.2021 |

Investment managers have expressed concern about the high volatility of bitcoin on online exchanges. At the same time, digital gold is not yet fully established as a means of saving and protection against inflation, and has more of a speculative nature of price fluctuations. This is indicated by the fact that the largest buyers of the first cryptocurrency are in no hurry to get rid of their investments.

Earlier economic experts talked about the risks associated with financial losses from operations with digital assets, but now the greater concern is the possible tightening of industry regulation, up to a complete ban on the circulation of bitcoin in any form.

However, for long-term investments, it is worth bearing in mind that a rather large share of the total trading volume is occupied by so-called unqualified investors, who are unable to fully grasp the current situation. When the first cryptocurrency lost about 10% of its value, which is not so significant at the moment, most exchanges had a forced closure of long positions, which triggered a long-squeeze, which dropped the quotes to the current values. Thus, even those who believe in digital gold at the moment can not play back the liquidity — they simply do not have the money. A similar picture is seen in the stock markets, where bitcoin is traded as derivatives.