Bitcoin could either surge dramatically or blow up entirely, says Citi
After peaking just above $58,000 on the Tesla news, Bitcoin has entered into a bit of a choppy period as it keeps below $50,000 but managing to hold off any protracted fall below $45,000 in the past few days.
But Citi warns that the cryptocurrency is facing a “tipping point” at the moment with the potential to explode higher or implode completely.
The recent embrace by Tesla and MasterCard could point to Bitcoin beginning a massive transformation of going mainstream and that could gather even more involvement from institutional investors as it has as of late, says Citi.
If businesses and individuals gain access via digital wallets to planned central bank digital cash and so-called stablecoins, the popular digital currency’s global reach, traceability and potential for quick payments could see its use for commerce widen dramatically.
But the firm also argues that there are challenges standing in the way of Bitcoin (not least the regulatory environment surely).
There are a host of risks and obstacles that stand in the way of Bitcoin progress. Weighing these potential hurdles against the opportunities leads to the conclusion that Bitcoin is at a tipping point.
Adding that Bitcoin could be a preferred currency for international trade or that it could be staring down the barrel of a “speculative implosion”.