Bitcoin news: A Candy for Wall Street?

According to a new Wedbush Securities report, the Bitcoin price will continue to be volatile – good conditions for market growth and the maturation process of the digital currency.

The report, entitled „Embracing Volatility: Trading as Bitcoin’s First Killer App,“ summarizes and does not negatively write about Bitcoin’s fluctuation and how the currency will benefit from its underlying infrastructure.

Gil Luria, author of the Bitcoin news report said

„Volatility in the Bitcoin price should not, in our view, hinder traders‘ acceptance as they are completely shielded from price volatility by payment processors according to Bitcoin news. We hope that consumers will also benefit from this in the Bitcoin news future. „Volatility

Luria pointed out that the two US companies Coinbase and Circle are already working on such a solution. Once this solution is in place, it will be normal for consumers to use Bitcoin wallets with small sums for their online transactions, Luria said.

However, the biggest challenge is to create an attractive and volatile market for investors in which consumers can participate in a less risky environment.

The power of market perception
The report also assesses investors‘ view of the Bitcoin market, which is reinforced by the belief that a single Bitcoin will one day be worth $1 million.

While the positive sentiment in the Bitcoin market continues, even the smallest changes in the long-term outlook could have a big impact on the Bitcoin price, the Wedbush report said.

If the long-term Bitcoin growth outlook changes by only 0.01%, the market value could already rise or fall by 10%.

But when it comes to Bitcoin formula, volatility attracts new investors in particular

„We think Wall Street speculators appreciate the volatility of Bitcoin formula and are attracted by the fact that Bitcoin trading takes place 24/7. The close relationship between volatility and volume is known from the equity market and is gradually establishing itself at Bitcoin as well.“ Professional trading continues to evolve like this:

Discussions with Wall Street traders have shown that Bitcoin trading is particularly interesting because of the strong swings in news, Luria said.

The rapid development of professional trading tools on the Bitcoin market is also interesting to observe. This attracts more and more speculators, according to the financial expert:

„We can see that this trend is continuing and that financial tools from stock trading are increasingly being integrated into the Bitcoin industry. These include derivatives, margin trading and computer trading. These tools all support the volatility of the stock market.“

It is no coincidence that margin trading was held responsible for the recent Bitcoin price collapse with a flash crash on the Bitcoin BTC-e stock exchange.

The complete report can be found here.