Cryptocurrency Bitcoin has experienced a tumultuous year, with prices continuing to oscillate on the market
At the time of writing, CoinDesk had Bitcoin trading at £5,062.14 ($6,587.26).
The world’s biggest cryptocurrency has been performing relatively poorly for most of this year.
Recent measurements, including a key volatility indicator, suggest it could be about to a swing in either a bullish or bearish direction.
September’s monthly rating volume was the lowest since last April, according to Bitfinex cryptocurrency exchange data.
But Bitcoin‘s healthy price floor suggests the market has a vested interest in stopping it from slumping any further – in another sign a bearish trend could be imminent.
Fundstrat’s Tom Lee believes Bitcoin will finish the year on a strong note.
The crypto expert said: “The fact Bitcoin is holding here is very good news.
“I think there are catalysts in the year-end so I think despite the lower highs we’ve seen I think we’re starting to reverse.”
The UK’s Treasury Committee chair Nicky Morgan has described Bitcoin as a gamble, rather than an investment.
She said: “Bitcoin and other crypto-assets exist in the wild west industry of crypto-assets.
“This unregulated industry leaves investors facing numerous risks.
“Given the high price volatility, the hacking vulnerability of exchanges and the potential role in money laundering, the Treasury committee strongly believes that regulation should be introduced.”
The news comes as Malta’s Prime Minister Joseph Muscat embraced the virtual currency, describing it as the inevitable future of money.
The PM has overseen an ambitious plan to transform the country into a blockchain island in less than a year.
Malta is now a home to numerous blockchain start-ups like Binance and Huobi, which are thriving under Malta’s receptive regulations supportive of cryptos.
Mr Muscat is at the forefront of advocating for proper regulations encouraging further innovation in the blockchain space.
He also believes that there is a much more user-case application of blockchain aside from being the future of money and as an effective filter between good and bad businesses.