Bitcoin has soared following the bank crisis that occurred earlier in the year, but many analysts – despite clear evidence that the world’s number one digital currency has risen exponentially – don’t think the asset is moving in the right direction or think it’s doing as well as so many of their peers believe.
Some Don’t Think Bitcoin Is Doing That Well
At the time of this article’s writing, the price of bitcoin is at about $28,000 per unit. This occurred after the world’s number one cryptocurrency lost more than 70 percent of its value. It was trading at a new all-time high of about $68,000 per unit in November of 2021, though 12 short months later, it dropped into the mid-$16K range. 2022 was, arguably, the worst year on record for crypto.
However, now the currency is rising back up again, and this appears to be due, in part, to the banking problems occurring in regions like the U.S. and Europe. Silvergate, Silicon Valley Bank, and Signature Bank have all crashed and burned over the past two months, and things are still very much up in the air regarding the world of centralized finance.
Thus, many have turned to bitcoin and similar assets to keep their portfolios “intact.” Who would have thought that such speculative and once volatile assets would now be the answers so many individuals are turning to?
Still, things allegedly aren’t happening as fast as some analysts think they should be. Ed Moya, a crypto analyst at the trading firm OANDA, said in a recent interview:
Is there widespread interest in and growth coming into the space? Is it a lot of new money? It doesn’t really seem like that’s happening.
Conor Ryder – research analyst for Kaiko – also threw his two cents into the mix, saying:
It doesn’t mean that because there’s a big price move one way that this is a whole new wave of institutional money or anything like that. It’s more so a liquidity issue.
Initially, bitcoin was introduced in whitepaper form in 2008 on Halloween. The asset was designed to be an answer, of sorts, to the financial crisis and Great Recession that were occurring that year, but things haven’t really taken off the way they were supposed to. Moya continued his statement with:
You’re seeing some flows just go out of stablecoins into bitcoin.
Molly White – a known crypto critic – was also quick to suggest that the banking issues haven’t led to as many people as originally anticipated jumping into the BTC space. She said:
If the spike was fear-driven, I would have expected it to have started during the SVB bank run.
Others Feel the Asset Is in a Great Spot
Cory Klippsten – chief executive at Swan Bitcoin – disagrees, saying:
They’re believers that this will be the global reserve currency. This is the best moment for bitcoin marketing and bitcoin adoption in its history.
