Bitcoin Price at 35{520ebc7d04367f10067c097a94259816cd1e6df76ec40212834858ca2e1af940} Premium to “Fair Value”; Will BTC Return to $7,500?

Over the past week, Bitcoin (BTC) has managed to embark on a strong recovery, gaining some 10{520ebc7d04367f10067c097a94259816cd1e6df76ec40212834858ca2e1af940} after a brutal drawdown to $9,300. Despite this, one indicator says that the cryptocurrency is still well overvalued, potentially by upwards of 35{520ebc7d04367f10067c097a94259816cd1e6df76ec40212834858ca2e1af940}. But does that mean Bitcoin is going to fall to its “fair value”? No, unlikely not. Here’s why Bitcoin Price Above “Fair Value”  Due to the fact that Bitcoin doesn’t generate cash flow, provide dividends, have a fixed yield, or abide by any other traditional instrument’s premise, investors have long struggled to fairly value the cryptocurrency. Related Reading: Inverse Bitcoin Price to Yuan Correlation Sets a New Record The best idea so far has been to give Bitcoin a “fair value” …

Analyst Claims Bitcoin Drop Towards $7,000 Highly Probable

Bitcoin and the aggregated crypto market incurred a sudden influx of buying pressure late-yesterday that allowed most major cryptocurrencies to post some decent gains, although these were largely erased overnight as BTC dropped back down towards $10,400. Bitcoin’s consistent ability to post strong bounces with each visit into the $9,000 region certainly provides some justification for a bullish outlook on the cryptocurrency, but one analyst is now pointing to the existence of a large falling wedge, which may mean that BTC will drop as low as $7,400 before positing a sustainable rally. Bitcoin Fails to Rally Overnight At the time of writing, Bitcoin is trading up nominally at its current price of $10,440, which marks a slight rise from its 24-hour lows of below $10,400, but …

Incoming European Central Bank President Is Open to Cryptocurrencies

Christine Lagarde, who has been nominated by European governments to replace sitting European Central Bank President Mario Draghi, appears kinder to the burgeoning cryptocurrency industry than her predecessor. In a statement issued to the Economic and Monetary Affairs Committee of the European Parliament, the former managing director of the International Monetary Fund laid out her guiding philosophy and game plan for how she will govern if her nomination is ratified. A Crypto-Friendly Statement In the speech, the EU Central Bank’s nominee briefly touched on the topic of innovative technologies, including cryptocurrency. And her touch was gentler than most. “In this environment, central banks and supervisors need to ensure the safety of the financial sector, but also to be open to the opportunities provided by change,” …