GETTY Bitcoin is set to surge by 70 per cent

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Bitcoin prices have continued to disappoint investors as the cryptocurrency once again dropped yesterday but that is set to change, a trader has claimed. Bitcoin traded to a low of $7,700 which marks a loss of 40 per cent since the beginning of the year. The trader, Bill Baruch, who is the President and founder of Blue Line Futures, said: “The $7,700 low is ironic because it is the same level that it broke above and began a parabolic ascent in mid-November. “I am watching a key level at $8,650 and a continued close above that could signal immediate upside potential.” The trader believes there will be a near-term upside of $14,500, a 70 per cent increase from its current price.

Mr Baruch went on to add: “I believe we are witnessing a market-cap rebalancing. “Many disregard bitcoin but most do not disregard blockchain technology.” The founder of Blue Line Futures, which is a leading futures and commodities brokerage firm, expects bitcoin to recover from its current low. He said: “I believe that there are cheaper and better technologies within the complex that are positioned for stronger gains. “The five that I am focused on are Ethereum, NEO, Ripple, Stellar and VeChain.”

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This comes after the cryptocurrency market cap reached a height of over $800 billion. Despite the fluctuating Bitcoin price, experts are predicting that the cryptocurrency could hit the $50,000 marker this year. Amid these highs and lows, a shocking study has emerged which has given an explanation for one massive price rise Bitcoin experienced. Back in 2013, Bitcoin rose from $150 to $1,000 within the space of just two months. It was a landmark moment for the cryptocurrency - and researchers now believe this price surge was sparked by one person.

GETTY Bitcoin prices have continued to disappoint investors as the cryptocurrency once again dropped

Their paper, ‘Price Manipulation in the Bitcoin Ecosystem’, explains that one bad actor was likely behind the huge Bitcoin price surge. In the study researchers Neil Gandal, JT Hamrick, Tyler Moore, and Tali Oberman explained how suspicious activity impacted Bitcoin’s price in 2013. The researchers wrote: “This paper identifies and analyses the impact of suspicious trading activity on the Mt. Gox Bitcoin currency exchange, in which approximately 600,000 bitcoins (BTC) valued at $188 million were fraudulently acquired.

Linkedin Bill Baruch is the President and founder of Blue Line Futures

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