It was a volatile week of trading for Bitcoin leading up to Christmas, but since Friday the cryptocurrency has been explosive.
Bitcoin shot up almost 25% since Friday and the other “big five” digital currencies have also seen huge moves alongside.
According to investing.com, bitcoin has now recovered over 50% since falling as low as $10,400 this past Friday. There was no specific reason to explain bitcoin’s big drop last week.
Bitcoin hit over $16,000 on Tuesday, a day after Christmas according to Coinbase, a leading U.S. platform for trading the major digital currencies. According to CoinMarketCap, ethereum was 0.2% higher and near $767 on Tuesday.
Coinbase stated that, “Due to high volume, we are experiencing a backlog of outgoing transactions for BTC and ETH. … Outgoing transactions of BTC and ETH may be delayed by several hours.”
One entrepreneur thinks that bitcoin will even hit as high as $60,000 next year.
According to cryptocurrency entrepreneur Julian Hosp, “I think we’re going to see bitcoin hitting the $60,000 mark, but I also think we’re going to see bitcoin hitting the $5,000 mark.”
Hops is the co-founder and president of TenX, a Singapore-based start up that is involved with digital currency. The firm plans to issue a pre-paid card that will “Take Bitcoin Into [the] Real World With Visa.”
Speaking to CNBC’s “Squawk Box,” Hosp said, “For experts that have been in the market, this was actually a welcome dip. This dip for us was very, very healthy, and some of us have used it to buy a little bit more because suddenly we had 40-45 percent discount to all-time highs.”
As for bitcoin falling, he said, “I don’t think right now, but I think in the long run, we will always see a little bit of an up move, and then a dip down.”
“I don’t think crypto winter is going to come in the next couple of months, but I think if we look down one to two years, there is definitely going to be a big compression in the market,” he explained.
“I don’t think it’s going to be a bubble that’s just going to burst and everyone is going to lose their money, but I think it’s going to be that all the coins and all the assets with very little use or value are going to get sorted out,” he said.