Bitcoin (BTC) prices are on the rise again after plunging from last week’s highs of more than £37,000 ($51,600). As of Tuesday afternoon, the latest Coindesk data shows bitcoin exchanging hands for £34,193.21 per token. The token is down on the last 24 hours but it has clawed back some of the losses it sustained on the weekend.
BTC prices fell as low as £31,257 ($43,616) on Sunday, February 28, after what has been a fairly eventful month for the token.
Just a week earlier the token hit a record-high price of £41,818 ($58,354) as more and more people believe cryptocurrencies are on the verge of mainstream acceptance.
CNBC’s Kate Rooney said on Monday bitcoin is back after a volatile weekend, suggesting a number of factors stood behind the retreat.
She said: “Similar to what we saw with tech stocks last week, interest rates may be weighing on crypto sentiment.
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“As rates on the 10-year rose, analysts say that some investors likely backed off bitcoin.”
The CITI group also published a report noting bitcoin is “at the tipping point of mainstream acceptance or a speculative implosion”.
Consequently, the group found BTC has the chance to become the “currency of choice for international trade”.
Paolo Ardoino, the CTO of cryptocurrency exchange Bitfinex, believes bitcoin has proven its scalability in the last seven years, and the technology is lightyears ahead of where it used to be.
Consequently, he believes bitcoin has the power to give people “control of their wealth and obtain financial freedom”.
Since bitcoin is entirely decentralised – unlike fiat currencies – it does not answer to higher authorities.
Many people in the crypto space believe this is the way forward for the future of finance – and bitcoin is very much seen as the torchbearer.
Mr Ardoino added: “We may indeed be on the verge of a tipping point in the emergence of a base layer of an alternative financial system.”
However, not everyone shares these positive attitudes about cryptocurrencies.
Here in the UK, for instance, the Financial Conduct Authority (FCA) has taken a firm stance against investing in cryptocurrencies.
In a note published last January, the FCA warned investing in cryptoassets for short-term, high returns is a risky gamble – and you could lose all of your money.
The FCA said: “Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money.
“If consumers invest in these types of product, they should be prepared to lose all their money.”