The European Central Bank (ECB) has stirred yet another controversy in the crypto world. A recent paper published by analysts at the ECB predicts that Bitcoin price might hit $10 million in the coming future.
However, the paper has also criticized many aspects of Bitcoin’s trading prospects. The paper highlights that even while the present market value of a Bitcoin is between $50,000 and $60,000, one could argue that any price for Bitcoin is equally likely, even up to $10 million.
Despite the bitter-sweet remark, the price of the OG cryptocurrency has been largely up. Initially a rise of nearly 1.2%, BTC is trading at $68,513.41, up 0.23% at the press time.
In the more controversial opinion, Ulrich Bindseil and Jürgen Schaaf, two economists at the European Central Bank (ECB), contend in the paper that early adopters of Bitcoin gain disproportionately from its increase in value, while non-holders and latecomers are losing out.
Although this may not represent the official position of the European Central Bank, the study has sparked discussion about possible regulatory ramifications.
ECB Highlights The Role of Politics In Bitcoin
In the paper, ECB writes that the evolution of the price of Bitcoin does not occur in a vacuum. Given its lack of a fundamental foundation of value and the harsh criticism it has received, politics will likely determine how Bitcoin develops.
Changes in the legal system, such as its acceptance as an investment product or the possibility of limitations or prohibitions, will have an impact on price movements and market sentiment.
The regulatory environment is highly diverse, ranging from some jurisdictions’ prohibitions on trading and mining to the US’s acceptance of Bitcoin as an investment instrument (via licensing of Bitcoin Futures and ETFs, for example) and El Salvador’s status as legal money.
Therefore, ECB argues that legislation and legal recognition are essential, despite the original idea of Bitcoin being free from governmental and legal intervention.
Bitcoin Price: Will It Continue Trading Higher?
Despite economic uncertainties, Bitcoin has seen 16 out of 30 (53%) green days in the past one month. If this momentum continues, the market expects Bitcoin to have increased by 35.02%.
At present, the Fear & Greed Index for BTC is reading 72 (Greed), and market indicators indicate that the mood is currently bullish.
Over the past 30 days, Bitcoin’s price volatility was 3.54%, with 27 technical analysis indicators indicating optimistic signals. As of right now, the BTC market is neutral, according to the RSI reading of 69.58.