After Some Slowdown, Is Wrapped Bitcoin (WBTC) Looking Like a Good Investment?

Cryptocurrency bridge token Wrapped Bitcoin had a small stumble today after a steady week of climbing higher and higher. Wrapped Bitcoin serves as a connecting currency between Ethereum and Bitcoin, filling that gap that Bitcoin is not able to cross on its own.

Wrapped Bitcoin is tied to the regular Bitcoin token, with the prices on the two currencies staying in near-perfect synch. As Bitcoin increases, so does Wrapped Bitcoin, and the two of these token have seen a steady increase for the past seven days. In fact, they have done quite well since the beginning of the month and have managed to stay above the key $46,000 (WBTC/USD) level.

That’s an important level for both Bitcoin and Wrapped Bitcoin since these two cryptos stayed under that level for the last 10 days of September. After that downturn, Wrapped Bitcoin has managed to recover, climbing to heights not seen since May of this year. Investors are hoping it will go much further, of course, and the next impediment will be the $60,000 level. It doesn’t look like we’ll be seeing much of the sub-$46,000 dollar price point for a while, though the current slowdown does have some investors worried.

Wrapped Bitcoin’s trade volume is down to $365 million over a 24-hour period, which is a drop of just over 4%. That’s nothing major, but it could indicate an impending bearish trend. After the nice bullish run Wrapped Bitcoin has experienced, that could make it difficult for Bitcoin to move much further beyond $60,000, if it even does reach that high.

Why Is Bitcoin Slowing Down?

There are a few factors that are affecting Bitcoin’s momentum, and therefore Wrapped Bitcoin’s movement. Analysts are closely watching any news from the US government about new regulations for cryptocurrency, which could be coming soon. There’s still some fallout from China’s continued ban of Bitcoin, and while cryptocurrency has mostly recovered from that event, China continues to make it more and more difficult to use cryptocurrency of any kind within its borders.

Bitcoin is also facing challenges in El Salvador, which recently made the crypto one of its two official currencies. There have been numerous issues in trying to incorporate Bitcoin into the country’s economic framework, and these have had far-reaching effects throughout the entire Bitcoin network.

Even though Wrapped Bitcoin is slowing down a little bit today, with a price drop of 0.53%, it’s considered a healthy long-term investment with the potential to go much higher than where it is.