The market price of Bitcoin is not based on any underlying fundamental, contends a senior Bundesbank official.
Carl-Ludwig Thiele, a board member for the German central bank, told German-language finance publication Handselblatt that a great level of uncertainty remains in terms of what drives the price of Bitcoin.
“Because of its design and because of the large volatility, Bitcoin [is] highly speculative,” Thiele said in a Jan. 7 report by CoinDesk. “We do not see that the price is being driven by fundamentals.”
Thiele’s contention suggests Bitcoin’s foundation of support may be wearing thin in Europe.
To learn more about other important events in the cryptocurrency’s history, read our latest PYMNTS Bitcoin Bubble Tracker by clicking here.
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