Experts are advising investors to avoid buying bitcoins at the moment as their price is likely to drop to US$20,000.
CEO Poramin Insom of Satang Corporation, said the digital currency’s value is likely to drop to between $20,000 and $25,000 in the first quarter of this year because its price has soared far too quickly.
However, he said, the bitcoin could rise to $40,000 in the next phase if the demand is still high.
“We expect the price of the bitcoin to rise this year as US President Joe Biden’s policies on controlling the trading of digital assets are still unclear,” he said.
However, he said, investors should not rush to buy the bitcoin yet.
UOB Kay Hian strategist Kitpon Pripisankit said the price of the bitcoin would fluctuate between $23,000 and $27,000 and is advising investors to buy for short-term speculation when its price drops to $27,000.
“However, we do not advise people to invest in the bitcoin when speculation is high because it will face long-term correction,” he said.
Arnat Leemakdej, director of Thammasat University’s Centre of Intellectual Property and Business Incubator, said if large funds continue trading in the bitcoin when speculation is high, its price will gradually drop to $20,000.
“This is not the best time to invest in bitcoin because it still has risks,” he said.
Original writer: The Nation
Source: Nation Thailand