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This week, bitcoin investors have been subject to a bout of volatility, the likes of which has come to define the cryptocurrency. However, so far no crash has materialised, and the price has since recovered somewhat. After a rocky , the price of bitcoin has been more stable this year.
It seems the market has matured to some degree and it is starting to attract more traditional investors such as George Soros. Thomas Lee, co-founder and head of research at Fundstrat, is the man behind this forecast. He believes that the recent downturn in the bitcoin price can be blamed on tax selling. And now that the selling is over, the price is free to run higher according to Fundstrat's analysis. The team of analysts at the research outfit believe that sentiment towards the cryptocurrency is currently at a level not seen since Its proprietary " bitcoin misery index " suggests sentiment towards the asset is so depressed it is now a contrarian trade.
Despite the bullish forecast from Mr Lee and team, personally, I can't bring myself to buy bitcoin. This is an asset I don't really understand, and while I believe that the blockchain technology underpinning it could be a revolutionary development, I'd rather invest in companies that are developing this technology rather than bitcoin itself. Also, I am concerned about the ever-increasing number of hack attacks against bitcoin accounts, and I'm not sure I'm happy investing my money in any platforms around at the moment.
That said, this is my personal opinion, and other investors may be more comfortable with the level of security offered by some platforms, as well as bitcoin's potential. However, this asset is only really suitable for those investors who know a lot about the subject matter and who are willing to take on the extra risks associated with ownership.
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