Citibank analysts: Bitcoin at a „tipping point“ in international trade
Mainstream acceptance is within reach for Bitcoin, Citibank analysts say.
Bitcoin (BTC), the world’s largest cryptocurrency, is at a pivotal historical moment, according to an analysis by US investment bank Citigroup.
Bitcoin is now at an „inflection point“, it said. It could either become the currency of choice for international Crypto Revolt trade or face a „speculative implosion“, the Citi analysts said.
According to a Reuters report on Monday, Citi analysts are confident that Bitcoin is on the verge of entering the mainstream
According to the report, Bitcoin’s huge potential has been highlighted once again by recent Bitcoin investments by companies such as Tesla and Mastercard.
The Citi analysts wrote: „There are a number of risks and hurdles that stand in the way of Bitcoin’s progress. But when you weigh these potential hurdles against the opportunities, you conclude that Bitcoin is at an inflection point.“
The analysts also suggested that mainstream adoption of Bitcoin could be boosted by developments in the digital currency space, such as digital central bank currencies and fiat-linked stablecoins.
Earlier, there was a sharp correction in the cryptocurrency market. In the process, Bitcoin fell to below 44,000 US dollars yesterday. At the beginning of February, it had reached a new all-time high of over 58,000 US dollars. At the time of going to press, Bitcoin was at 47,285 US dollars. This corresponds to an increase of about 4.5 per cent in the last 24 hours, according to data from Cointelegraph’s Bitcoin Price Index.
According to some experts, global regulation could be one of the biggest hurdles to bitcoin adoption by institutional investors. Bridgewater investment research director Rebecca Patterson said on 24 February that regulatory certainty around Bitcoin would solve some of the cryptocurrency’s biggest problems. These problems are related to high volatility and low liquidity, she said.