8.15am MORNING HEADLINES
Good morning, and welcome to our rolling coverage of all things cryptocurrency, including price, regulation, innovation and financial crime.
However, despite enjoying a positive week so far, bitcoin bull Arthur Hayes from BitMEX warns that bitcoin hasn't bottomed yet.
Having previously predicted that BTC would reach $50,000 by year's end just a few weeks ago, the expert told CNBC, "I don't actually think we've seen the worst.
"I would like to see us test $5,000 to really see if we put a bottom in."
On the end of year predictions he said: "I think the current rally will top out close to but not greater than $10,000. Then we will fall and test $5,000. If that holds then we can rally to $50,000 by year end."
Blackrock
This week's price rise arrived on the back of news that the world's largest asset manager was moving towards crypto.
Alexander Mann, Associate at Concentric told Express.co.uk that big players like BlackRock are beginning to recognise that bitcoin is not going away anytime soon and perhaps beginning to understand the technical properties that make it special.
* Price & chart conversion through BTC
He said crypto has learnt how to roll with the punches, adding: "Bitcoin has now been around for almost 10 years, surviving numerous attacks - from the media, governments and hackers - and has created over $300bn of dollars in value.
"It’s an extraordinary achievement and likely has a long way to go yet.
"If you compare it to other asset classes, it is still only a fraction of their total value.
"Commonly compared to gold due to the more widely understood ‘Store of Value’ use case, bitcoin is still only something like 2 percent of the overall gold market yet has numerous properties that potentially make it much more valuable, such as a fixed supply of 21m coins, the ability to divide it into smaller and smaller amounts, low transaction costs, the fact the network is constantly being upgraded by some of the world’s brightest minds and of course it’s security through decentralisation."
Mr Mann says that, from a financial perspective, if it achieves just 10 percent of the gold market - a "conservative prediction" - we’ll see massive price appreciation.
He adds, "that’s very possible and from an investor standpoint it seems like these institutions have decided the potential rewards now finally outweigh the risk.
"The joke doing the rounds in the crypto community right now is that the world’s first trillionaire will well be a billionaire who has invested a significant % of their wealth in bitcoin."
Got something to add? Send your reaction / thoughts / analysis / price predictions over to @DavidGDawkins.
Updates below throughout the day.....
Bitcoin price: Barry Silbert shuts down Bitcoin critics
8.49am - Robos warn against crypto
Financial News report that three of the UK’s largest robo-advisers have called on the country’s main financial watchdog to regulate bitcoin and other cryptocurrencies.
Senior managers at firms backed by Aviva, Schroders and BlackRock have warned the top regulator that consumers could be at risk of losing vast amounts of money if the UK’s Financial Conduct Authority does not step in soon and regulate the crypto space.
Richard Theo, Wealthify’s chief executive and founder, told Financial News: “The FCA is way too slow. [As a regulated firm] there are a lot of tests we have to do before we can take on a client. But that same client can go and buy bitcoin with no questions asked. There are far more risks involved when investing in bitcoin.
"The FCA should get on to it fast.”
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