The Citigroup has said that the crypto currency bitcoin is at a “tipping point” and could turn out to be the currency of choice for international trading.
That helped the largest crypto currency of the world in terms of market cap to rise more than 7 per cent on Monday following some recovery in the bond market at the end of last week and as all risk assets rallied.
The investment bank said that bitcoin could not be set at the beginning of a “massive transformation” and entry into the global financial mainstream even as the crypto currency has found wider adoption by major global companies such as Tesla Inc and Mastercard Inc in recent days.
On the other hand, the crypto currency trading desk at Goldman Sachs will also start dealing in bitcoin futures and non-deliverable forwards for its clients starting next week, the investment banker has planned, according to reports quoting source information.
On Monday, the price of bitcoin touched $47,691 as the virtual currency regained some ground after its bad performance last week which was preceded with it touching a record high of $58,332 in the previous weekend.
Analysts at Citi said in a trading call that bitcoin was at a “tipping point” as being widely accepted for international trading or a “speculative implosion.”
“Those drawing parallels to the bursting of the crypto bubble in 2017 may not be accounting for the technology’s advancement since then,” said Paolo Ardoino, chief technology officer at cryptocurrency exchange Bitfinex.
In the path to the progress for bitcoin, there was a “host of risks and obstacles” for it, a group of analysts led by Citi GPS managing editor Kathleen Boyle, also noted.
“But weighing these potential hurdles against the opportunities leads to the conclusion that bitcoin is at a tipping point and we could be at the start of massive transformation of cryptocurrency into the mainstream,” they said.
However because of its global reach, neutrality and lack of exposure to foreign exchange markets, it is possible that bitcoin would eventually become “the currency of choice for international trade,” the report added.
The reports also noted that in the recent years, the biggest change in the outlook for bitcoin has been because of a change of focus from a retail endeavour to “something that looks attractive for institutional investors”.
The report noted that there is expected to be an increase in the number of individuals and businesses who would have digital wallets holding a variety of crypto currencies as is the case today with checking, savings and treasury accounts in the eventuality of the creation of digital currency that have the backing of central banks of various countries.
“In this scenario bitcoin may be optimally positioned to become the preferred currency for global trade,” the analysts added.
Citi noted that bitcoin however also faces a number of obstacles in its path to wider acceptance in the financial mainstream which includes upgrades to the marketplace and the potential for the crypto currency space to move closer to the oversight and rules of traditional financial regulators.
(Source:www.marketwatch.com)
That helped the largest crypto currency of the world in terms of market cap to rise more than 7 per cent on Monday following some recovery in the bond market at the end of last week and as all risk assets rallied.
The investment bank said that bitcoin could not be set at the beginning of a “massive transformation” and entry into the global financial mainstream even as the crypto currency has found wider adoption by major global companies such as Tesla Inc and Mastercard Inc in recent days.
On the other hand, the crypto currency trading desk at Goldman Sachs will also start dealing in bitcoin futures and non-deliverable forwards for its clients starting next week, the investment banker has planned, according to reports quoting source information.
On Monday, the price of bitcoin touched $47,691 as the virtual currency regained some ground after its bad performance last week which was preceded with it touching a record high of $58,332 in the previous weekend.
Analysts at Citi said in a trading call that bitcoin was at a “tipping point” as being widely accepted for international trading or a “speculative implosion.”
“Those drawing parallels to the bursting of the crypto bubble in 2017 may not be accounting for the technology’s advancement since then,” said Paolo Ardoino, chief technology officer at cryptocurrency exchange Bitfinex.
In the path to the progress for bitcoin, there was a “host of risks and obstacles” for it, a group of analysts led by Citi GPS managing editor Kathleen Boyle, also noted.
“But weighing these potential hurdles against the opportunities leads to the conclusion that bitcoin is at a tipping point and we could be at the start of massive transformation of cryptocurrency into the mainstream,” they said.
However because of its global reach, neutrality and lack of exposure to foreign exchange markets, it is possible that bitcoin would eventually become “the currency of choice for international trade,” the report added.
The reports also noted that in the recent years, the biggest change in the outlook for bitcoin has been because of a change of focus from a retail endeavour to “something that looks attractive for institutional investors”.
The report noted that there is expected to be an increase in the number of individuals and businesses who would have digital wallets holding a variety of crypto currencies as is the case today with checking, savings and treasury accounts in the eventuality of the creation of digital currency that have the backing of central banks of various countries.
“In this scenario bitcoin may be optimally positioned to become the preferred currency for global trade,” the analysts added.
Citi noted that bitcoin however also faces a number of obstacles in its path to wider acceptance in the financial mainstream which includes upgrades to the marketplace and the potential for the crypto currency space to move closer to the oversight and rules of traditional financial regulators.
(Source:www.marketwatch.com)
