According to figures, bitcoin prices have stabilised around the $23,000 to $24,000 level after falling below $20,000 in June.
The prices of Ethereum and other leading digital currencies have also risen in the last two months, raising hopes that this nascent market has bottomed out, according to CNN.
However, the optimism may be premature and fleeting. Companies with direct ties to the cryptocurrency landscape are still struggling.
After the closing bell on Tuesday, Coinbase reported a loss for the second quarter. This follows Nvidia’s revenue warning on Monday, CNN reported. Nvidia’s graphics cards are a key component in many bitcoin mining rigs.
With all of this in mind, some experts believe bitcoin will remain trapped in a narrow range for the foreseeable future.
Bitcoin supporters point to a recent agreement between Coinbase and money management behemoth BlackRock as a promising sign.
“The partnership between BlackRock and Coinbase is a massive deal,” said Jack Cameron, co-founder of Luna Market, a metaverse advertising and tech company, in an email.
Cameron added that because bitcoin “still has a stigma,” more companies like BlackRock entering the digital asset sector is good news, according to CNN.
“The more institutional money [that] joins the space, the better it is for all holders of crypto,” he wrote.
Bitcoin, despite proponents’ claims that it is digital gold, has not proven to be a good investment when inflationary pressures are high and interest rates are rising, according to CNN.
