Stephen Kelso, Head of Markets, ITI Capital comments:

“Bitcoin is a volatile asset, as demonstrated by the extended deleveraging from liquidations on retail trading platforms over the last week.  The substantial draw-down has triggered fresh scrutiny from some traditional banks and institutional asset managers across Europe.

“Bitcoin is a manifestation of the value of the internet – its devaluation has been caused by a confluence of negative news reports including a tweet from ‘crypto celebrity’ Elon Musk, a reiteration of the ongoing crackdown in China and reports of the US tax authority probing crypto transactions – drawdowns which are likely to only have a temporary impact on the price of the digital asset.  To bet against Bitcoin is a contingent bet against both the internet and the  economic policy responses for the G4 central banks.  In our opinion, it would be more risky to bet against bitcoin now, than it would have been to bet against Amazon 23 years ago – this comparison can be drawn due to the distinct similarity of bitcoin’s 13 year price history versus Amazon’s 23 years with the multiple double-digit corrections along the path.”