International banking giant based in the United States Citi only published a 107-page predominantly bullish report on Bitcoin (BTC), its achievements and what could happen next, while some other analysts predict a “downward spiral” for BTC.
In its GPS Series report, Citi highlighted three developments for Bitcoin:
- “The growing acceptance by businesses, availability at ATMs and payment services indicate that cryptocurrencies are increasingly present in the general public.”
- “As crypto business models mature and institutional demand increases, existing entities are reorganizing their offerings and new entrants emerge to provide enhanced data and exchange, trading and custody services to institutional investors.”
- “As its global reach continues to expand, Bitcoin’s borderless design and other features may position it to become an international trade currency in the future.”
According to the report’s authors, the resistance that BTC faced in its early days “may now be melting away”.
“Bitcoin’s vision as a force that will transform the world may seem obvious in a few years. The fact that this progression has occurred in just over a decade makes Bitcoin remarkable regardless of its future,” they said. .
According to them, it is still unclear whether BTC maintains its position and to what extent the potential transformation it has inspired extends. In both cases, “Bitcoin’s journey has clearly entered a new phase.”
Meanwhile, the report also listed several obstacles to Bitcoin’s progress:
- “Institutional investors are frustrated with the lack of capital efficiency in the way Bitcoin and other cryptocurrencies are used.”
- “Bitcoin and other altcoins held in digital wallets are not government issued and therefore do not have the protections that this currency typically has.”
- “Concerns about illicit or illegal activity due to the anonymous nature of transactions on the public blockchain is another point for institutional participants to consider.”
- “Attached is not completely transparent and does not allow the audit of its guarantee reserve. “(Learn more: TEther, Bitfinex Tune NY AG Probe, Expect More Transparency)
- “Asset managers increasingly focusing on ESG of their own business and investment portfolios [Environmental, Social, and Governance] impacts and with many institutional investors already leaders in the ESG space, this consideration could inhibit their interest in Bitcoin. “
- Greater regulatory certainty can trigger a native crypto backlash, divide liquidity: “Many of the more innovative and talented developers may choose to pull out of established platforms by deploying more extensive oversight and oversight.
- “Other cryptocurrencies can overtake and displace bitcoin.”
- “The macroeconomic environment can change and siphon off institutional interest.”
Concerns related to ESGs were also highlighted by BCA Research Inc., an independent, Canada-based provider of global investment strategy research and advice. According to them, environmental, social and governance-focused funds are likely to avoid companies associated with Bitcoin due to the high energy consumption of miners on computer networks, such as reported by Bloomberg.
“Many companies have moved closer to Bitcoin in order to partner with the technological mystique of digital currency. As ESG funds start to flee Bitcoin, its price will begin a downward spiral. Stay away,” said Peter Berezin, chief strategist of BCA Research. say in the report.
At the time of writing (12:08 p.m. UTC), BTC is trading at $ 47,960 and is rising 5% in one day, reducing its weekly losses to 17%. It rebounded 40% in a month and 460% in a year.
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