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.
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